8. On December 31, 2020, ABC Company reported cost of goods sold of P750,000 and ending inventory of P150,000. The following errors related to inventory were identified by the company at the end of the year: • January 1, 2020 inventory is understated by P17,000. • December 31, 2020 inventory is understated by P31,000. • Purchases of P30,000 made in December 2020 were not recorded, although the goods were received and properly included in the December 31 physical inventory. What is the correct cost of goods sold to be reported in 2020?

Principles of Accounting Volume 1
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ISBN:9781947172685
Author:OpenStax
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Chapter10: Inventory
Section: Chapter Questions
Problem 13PA: Company Elmira reported the following cost of goods sold but later realized that an error had been...
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Please answer number 8

8. On December 31, 2020, ABC Company reported cost of goods sold of P750,000 and ending inventory
of P150,000. The following errors related to inventory were identified by the company at the end of
the year:
• January 1, 2020 inventory is understated by P17,000.
• December 31, 2020 inventory is understated by P31,000.
• Purchases of P30,000 made in December 2020 were not recorded, although the goods were
received and properly included in the December 31 physical inventory.
What is the correct cost of goods sold to be reported in 2020?
Transcribed Image Text:8. On December 31, 2020, ABC Company reported cost of goods sold of P750,000 and ending inventory of P150,000. The following errors related to inventory were identified by the company at the end of the year: • January 1, 2020 inventory is understated by P17,000. • December 31, 2020 inventory is understated by P31,000. • Purchases of P30,000 made in December 2020 were not recorded, although the goods were received and properly included in the December 31 physical inventory. What is the correct cost of goods sold to be reported in 2020?
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