Hunter Co. is a calendar-year retailer. Its year-end physical count of inventory on hand did not consider the effects of the following transactions:Goods with a cost of P50,000 were shipped by Hunter FOB shipping point on December 30 and were tendered to and accepted by the buyer on January 4.Goods with a cost of P40,000 were shipped FOB destination by a vendor on December 30 and were tendered to and accepted by Hunter on January 4.Goods were sold on the installment basis by Hunter. Installment receivables representing sales of goods with a cost of P30,000 were reported at year-end. Hunter retains title to such goods until full payment is made.Goods with a cost of P20,000 were held on consignment for a vendor. These goods were excluded from the count although they were sold in January.If inventory based solely on the physical count of items on hand equaled P1 million. Hunter should report inventory at year-end of ____________

Name: Hunter Co. is a calendar-year retailer. Its year-end physical count o
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Description: Hunter Co. is a calendar-year retailer. Its year-end physical count of inventory on hand did not consider the effects of the following transactions:Goods with a cost of P50,000 were shipped by Hunter FOB shipping point on December 30 and were tender

Step 1 Inventory is to be reported after making adjustments.

Answered: Hunter Co. is a calendar-year retailer.…

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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Hunter Co. is a calendar-year retailer. Its year-end physical count of inventory on hand did not consider the effects of the following transactions:

Goods with a cost of P50,000 were shipped by Hunter FOB shipping point on December 30 and were tendered to and accepted by the buyer on January 4.
Goods with a cost of P40,000 were shipped FOB destination by a vendor on December 30 and were tendered to and accepted by Hunter on January 4.
Goods were sold on the installment basis by Hunter. Installment receivables representing sales of goods with a cost of P30,000 were reported at year-end. Hunter retains title to such goods until full payment is made.
Goods with a cost of P20,000 were held on consignment for a vendor. These goods were excluded from the count although they were sold in January.

If inventory based solely on the physical count of items on hand equaled P1 million. Hunter should report inventory at year-end of ____________

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