Gon Incorporated reported its inventory balance on December 31, 2016 at P5,000,000. During the audit, the following information was obtained and was not accounted for by the company. 1. Purchased merchandise during 2016 on credit for P600,000.The inventory was sold in the same year. The company uses a periodic system. 2. Goods in transit amounting to P230,000 shipped "f.o.b. destination" by supplier were recorded as a purchase but were excluded from ending inventory. The goods were received in 2017. 3. Goods held on consignment were included in inventory count and recorded as a purchase totaling P300,000. 4. Goods in transit shipped "f.o.b. shipping point" were not recorded as a sale and were included in ending inventory. The goods amounted to P540,000 and shipped on December 29, 2016. 5. Goods were shipped and appropriately excluded from ending inventory but sale was not recorded. The cost of goods cold P100 000 sold at 25% above cost.

Gon Incorporated reported its inventory balance on December 31, 2016 at P5,000,000. During the audit, the following information was obtained and was not accounted for by the company. 1. Purchased merchandise during 2016 on credit for P600,000.The inventory was sold in the same year. The company uses a periodic system. 2. Goods in transit amounting to P230,000 shipped "f.o.b. destination" by supplier were recorded as a purchase but were excluded from ending inventory. The goods were received in 2017. 3. Goods held on consignment were included in inventory count and recorded as a purchase totaling P300,000. 4. Goods in transit shipped "f.o.b. shipping point" were not recorded as a sale and were included in ending inventory. The goods amounted to P540,000 and shipped on December 29, 2016. 5. Goods were shipped and appropriately excluded from ending inventory but sale was not recorded. The cost of goods cold P100 000 sold at 25% above cost.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Applying the lower-of-cost-or-market approach, what is the correct value that should be reported on the balance sheet for the inventory?
What is the ending inventory value?
In which section of a Classified Balance Sheet would Merchandise Inventory appear?
What is my Cost of Inventory?
Explain the gross profit method of estimating ending inventory.
What financial statement is merchandise inventory reported on, and in what section?
What costs should be included in the measurement of cost merchandise inventory?
What would be the beginning inventory?
How do you calculate periodic and perpetual inventory?
how do I find the amount of inventory under the dollar value using the LIFO method?
What is accounting for merchandise inventory?