On December 31, 2021, ABC Company sold merchandise for P 675,000 to BBB Company. The terms of the sale were net 30, FOB shipping point. The merchandise was shipped on December 31, 2021, and arrived at BBB on January 5, 2022. Due to a clerical error, the sale was not recorded until January 2022 and the merchandise sold at a 35% markup on cost was included in inventory on December 31, 2021. What was the effect of the error on net income for 2021? Group of answer choices

Q: What should be the reported amount of inventory on December 31, 2021? Eisha Company conducted a…

A: Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to…

Q: Merchandise purchased on terms FOB Shipping Point, was shipped by the supplier on December 31, 2019…

A: calculation of correct amount of inventory as on December 31, 2019 are as follows

Q: On December 31, 2019, Ana Inc. sold merchandise for P750,000 to Ysa Inc. The terms of the sales were…

A: Solution Merchandise is an inventory assets that a retailer , distributor or wholesaler purchases…

Q: At December 31, 2021, the accounting staff of Persimmon Company submitted an inventory list that…

A: Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to…

Q: Yellow Company’s inventory at December 31, 2021 was P570,000 based on a physical count of goods…

A: Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to…

Q: On December 31, 2021, ABC Company sold merchandise for P 675,000 to BBB Company. The terms of the…

A: ABC Company sold merchandise for P 675,000 to BBB Company.  At a margin of 35%  markup on cost…

Q: The physical inventory on December 31, 2019 of Tintin Co. showed merchandise at P172,000. You…

A: The balance of inventory on December 31, 2019 as P172,000. To find the correct amount of inventory…

Q: What amount should be reported as inventory on December 31, 2021? Fundador Company reported that…

A:

Q: On December 31, 2019, Ana Inc. sold merchandise for P750,000 to Ysa Inc. The terms of the sales were…

A: As per the shipping terms, inventory is considered delivered when it is shipped to customer. As per…

Q: On June 16, 2021, Emily Corporation sold merchandise to Franz Company for P6,000, terms 2/10, n/30.…

A: Periodic inventory system is one of the inventory systems in which all transactions related to…

Q: On December 30, 2018, JENNIE Corporation sold merchandise for P75,000 to LISA Company. The terms of…

A: solution concept FOB shipping point                 On the FOB shipping point terms the revenue…

Q: Take me to the text Suppose that on November 20, 2021, both Company A and Company B sold inventory…

A: The objective of this question is to calculate the value of inventory as at November 20 for both…

Q: On March 12, Fret Company sold merchandise in the amount of $9,400 to Babson Company, with credit…

A: A perpetual inventory system is used to track the flow of inventory in real time through a business,…

Q: On June 16, 2021, Emily Corporation sold merchandise to Franz Company for P6,000, terms 2/10, n/30.…

A: The journal entries are prepared to record day to day transactions of the business.

Q: Vangie Company, a merchandising concern entity, has the following transactions during 2020:…

A: NOTE : As per BARTLEBY guidelines, when multiple questions are given, then first question is to be…

Q: Makati Co. bills its Valenzuela branch for merchandise at 140% of cost. At the end 2020, the branch…

A: The balance of the Allowance for Overvaluatiion of Branch Inventory account represents the…

Q: The Apollo Company conducted a physical count on December 31, 2021 which revealed in inventory with…

A: Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to…

Q: A business A uses periodic inventory system. On Nov 15, 2021, the business A sold merchandise to…

A: Solution: It is assumed that company is using gross method of accounting for purchase and sales.

Q: How much cash is required to eliminate the current balance in accounts payable?

A: The answer for the question how much cash is required to eliminate the current balance in accounts…

Q: Bilo-Bilo Company’s inventory at June 30, 2022, was P75,000 based on a physical count of goods…

A: The term inventory refers to both the raw materials utilized in production and the finished goods…

Q: 5. On December 31, 2020, XYZ's fiscal year end, a physical count of inventory revealed an inventory…

A: Inventory is one of the important current asset being used by the business. For purchases and sales…

Q: Empty Company reported inventory on December 31, 2020 at P2,500,000 based on physical count priced…

A: Inventory on December 31, 2020= P2,500,000 Merchandise shipped on December 30, 2020= P100,000…

Q: ros Company’s inventory at December 31, 2019 was P2,500,000 based on physical count priced at cost…

A: Solution: inventory to be reported at December 31, 2019 = physical inventory + goods in transit…

Q: On December 31, 2019, Ana Inc. sold merchandise for P750,000 to Ysa Inc. The terms of the sales were…

A: Solution Calculation of Inventory wrongly recorded- = 750000 / (100+25%). = 600000.

Q: On March 24, 2021, blue Company purchased merchandise with an invoice price of 48,000 and terms of…

A: There is two methods to record discount which are, (1) Net method (2) Gross method We will talk…

Q: Towbin Products sells merchandise On credit for $7,000 on December 1, 2019. The merchandise cost…

A: The answer is stated below:

Q: . The Cherry Company's physical inventory on December 31, 2021 showed that merchandise with a cost…

A: Correct inventory that should appear in Cherry Company's statement of financial position at December…

Q: Fig Company's inventory at December 31, 2021 was P570,000 based on a physical count of goods priced…

A: Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to…

Q: On December 31, 2019, Ana Inc. sold merchandise for P750,000 to Ysa Inc. The terms of the sales were…

A: Lets understand the basics. When any error found out after the closing books of account of years…

Q: Vangie Company, a merchandising concern entity, has the following transactions during 2020: a.…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…