On Feb. 18, 2019, a fire destroyed the merchandise inventory of Cristina Santiago Shirts. The following information was available from the entity's accounting office: Cost of Goods Sold P1,260,000 Transportation In Merchandise Inventory, 1/1/2019 39,600 300,000 Purchases Discounts 26,400 Purchases Returns and Allowances 46,200 1,320,000 Purchases Required: Compute the value of the lost merchandise.

Q: What is freight in on purchases?

A: Purchases are the transaction where in the buyer purchases goods and services from a seller by…

Q: How do inventory errors affect the financial statements.

A: The financial statements of the business includes the income statement and balance sheet.

Q: Receivables are amounts due from others that arise from the sale of goods or services. Select one:…

A: Accounts receivables represents the amount due to firm for the goods or services sold on credit.…

Q: How do we record and report inventory shrinkage? Which accounts are affected?

A: Inventory Shrinkage:-When inventory has become less than the actual inventory recorded is known as…

Q: What is a merchandiser, and what is the name of the merchandise that it sells?

A: Merchandiser: A merchandiser is a business that sells goods, or merchandise, to its customers.

Q: How to Compensate a Buyer for Returned Goods.

A: When a customer returns items to a shop after the parties cancel the initial sales agreement, the…

Q: How do you think the miss statement of fines will impact the important statement and balance sheet.

A: Given: The impact on income statement and balance sheet due to misstatements of funds.

Q: The return of the defective merchandise from a sale of merchandise on account decreases the amount…

A: Sales Return: Sales return refers to the return of defective, damaged inventories or merchandise by…

Q: How does the percent-of-sales method compute bad debts expense?

A: In percent of sales method, bad debt expenses are computed as a predetermined percentage of credit…

Q: Who is the owner of goods on consignment? (Please give full explanation and please avoid…

A: In the consignment basis goods are sent by the consignor to the consignee to sell the goods and in…

Q: What is the expense account associated with the cost of uncollectible receivables called?

A:

Q: What is inventory shrinkage? What are some of the reasons for inventory shrinkage?

A: Inventory Shrinkage :  As the name suggests, it is considered as shrinking or shortening of…

Q: What are the different methods of inventory valuation, and how do they affect the balance sheet and…

A: Inventory valuation is an essential part of accounting for any business that deals with physical…

Q: Under what circumstances should sellers consider the time value of money when recognizing revenue?

A:

Q: Discuss the treatment of freight-in, purchase returns, purchase discounts, normal spoilage, sales…

A: Retail inventory method: It takes into account all the retail amounts that is, the current selling…

Q: While reporting revenue, how a company should consider barter arrangement and discount?

A: Revenue Reporting: The process of accounting for revenue for a product you offer to a client is…

Q: Why should one not use a rent-to-own for mer

A: Rent - to- own: Rent-to-own (RTO) stores sell things like articles of furniture and appliances to…

Q: What is the role of a sales invoice in the revenue recognition process?

A: The revenue recognition process is a systematic and structured set of regulations, instructions, and…

Q: What type of account (asset, liability, etc.) is Allowance for Doubtful Accounts? What is the…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: 2. When Inventory is sold, how is the cost of goods sold account affected? Briefly explain

A: Inventory is an asset which is recorded in the balance sheet . It is the merchandise owned by the…

Q: If you paid miscellaneous expenses does it decrease cash asset?

A: Miscellaneous expenses are those expenses which are usually group of small amounts from small…

Q: Under a perpetual inventory system, inventory shrinkage and lost or stolen goods are more readily…

A: A perpetual inventory system is an inventory management tool that enables the business organization…

Q: What is Target’s policy with respect to accounting for merchandise returns?

A: Financial Statements: Financial statements are a group or reports that present the financial…

Q: Why Do Transferors of Receivables Generally Want to Account for the Transfer as a Sale?

A:

Q: what are the effects of inventory errors on the financial statements

A: Incorrect recording of Inventory balance results in the Inventory errors.

Q: What factors contribute to (or cause) inventory shrinkage?

A: Shrinkage: The cost of the difference between the recorded inventory value and physical count of…

Q: How does an inventory error effect the financial statements?

A: Inventory error:   Inventory errors are sometimes caused by making mistake in physical count, in…

Q: When equipment is sold for morethan book value, how is the transaction recorded? Howis it recorded…

A: Equipment is an Asset. Generally these provides support to the plant so commonly known as Plant…

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.