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20. (Use the PFRS for SMEs) On 1 January 20X1 an entity acquired goods for sale in the ordinary course of business for ₱100,000, including ₱5,000 refundable purchase taxes. The supplier usually sells goods on 30 days’ interest-free credit. However, as a special promotion, the purchase agreement for these goods provided for payment to be made in full on 31 December 20X1. In acquiring the goods transport charges of ₱2,000 were incurred: these were due on 1 January 20X1. An appropriate discount rate is 10 per cent per year. The entity shall measure the cost of inventories at: a. ₱102,000 b. ₱97,000 c. ₱88,364 d. ₱107,000

20. (Use the PFRS for SMEs) On 1 January 20X1 an entity acquired goods for sale in the ordinary course of business for ₱100,000, including ₱5,000 refundable purchase taxes. The supplier usually sells goods on 30 days’ interest-free credit. However, as a special promotion, the purchase agreement for these goods provided for payment to be made in full on 31 December 20X1. In acquiring the goods transport charges of ₱2,000 were incurred: these were due on 1 January 20X1. An appropriate discount rate is 10 per cent per year. The entity shall measure the cost of inventories at: a. ₱102,000 b. ₱97,000 c. ₱88,364 d. ₱107,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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20. (Use the PFRS for SMEs) On 1 January 20X1 an entity acquired goods for sale in the ordinary course of business for ₱100,000, including ₱5,000 refundable purchase taxes. The supplier usually sells goods on 30 days’ interest-free credit. However, as a special promotion, the purchase agreement for these goods provided for payment to be made in full on 31 December 20X1. In acquiring the goods transport charges of ₱2,000 were incurred: these were due on 1 January 20X1. An appropriate discount rate is 10 per cent per year. The entity shall measure the cost of inventories at: a. ₱102,000 b. ₱97,000 c. ₱88,364 d. ₱107,000
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