ACC 304 All Assignments ACC 304 All Assignments | Page 79

34. Which of the following items should be included in a company's
inventory at the balance sheet date?
a. Goods in transit which were purchased f.o.b. destination.
b. Goods received from another company for sale on consignment.
c. Goods sold to a customer which are being held for the customer to
call for at his or her convenience.
d. None of these.
Use the following information for questions 35 and 36.
During 2012 Carne Corporation transferred inventory to Nolan
Corporation and agreed to repurchase the merchandise early in 2013.
Nolan then used the inventory as collateral to borrow from Norwalk
Bank, remitting the proceeds to Carne. In 2013 when Carne