Sejz Company used perpetual inventory system to record inventory transactions for 2021. P1,900,000 6,500,000 150,000 4,600,000 120,000 On December 24, the entity recorded a P 150,000 credit sales of goods costing Inventory Sales Sales returns Cost of goods sold Inventory losses P 100,000. These goods were sold on FOB destination point terms and were in transit on December 31. The goods were included in the physical count. The inventory on December 31 determined by physical count has a cost of P 2,000,000 and a net realizable value of P 1,700,000. Any inventory writedown is not yet recorded. What amount should be reported as Cost of Goods Sold for 2020? A. P 5,020,000 В. Р4,500,000 С. Р4,720,000 D. P 4,920,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Topic Video
Question
Sejz Company used perpetual inventory system to record inventory transactions for
2021.
P1,900,000
6,500,000
150,000
4,600,000
120,000
On December 24, the entity recorded a P 150,000 credit sales of goods costing
Inventory
Sales
Sales returns
Cost of goods sold
Inventory losses
P 100,000.
These goods were sold on FOB destination point terms and were in transit on December
31. The goods were included in the physical count. The inventory on December 31
determined by physical count has a cost of P 2,000,000 and a net realizable value of P
1,700,000. Any inventory writedown is not yet recorded.
What amount should be reported as Cost of Goods Sold for 2020?
A. P 5,020,000
В. Р4,500,000
С. Р4,720,000
D. P 4,920,000
Transcribed Image Text:Sejz Company used perpetual inventory system to record inventory transactions for 2021. P1,900,000 6,500,000 150,000 4,600,000 120,000 On December 24, the entity recorded a P 150,000 credit sales of goods costing Inventory Sales Sales returns Cost of goods sold Inventory losses P 100,000. These goods were sold on FOB destination point terms and were in transit on December 31. The goods were included in the physical count. The inventory on December 31 determined by physical count has a cost of P 2,000,000 and a net realizable value of P 1,700,000. Any inventory writedown is not yet recorded. What amount should be reported as Cost of Goods Sold for 2020? A. P 5,020,000 В. Р4,500,000 С. Р4,720,000 D. P 4,920,000
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Accounting for Merchandise Inventory
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education