On January 1, 2022, Roseland Company experienced a decline in the value of inventory resulting in write down from P8,000,000 cost to P7,000,000 net realizable value. The entity used the allowance method to record the necessary adjustment. In 2022, market conditions have improved dramatically. On December 31, 2022, the inventory had a cost of P10,000,000 and net realizable value of P9,600,000. The entity made purchases of P40,000,000 in 2022? 11. How much is the gain on reversal of impairment? a. 400,000 b. 600,000 c. 200,000 d. 0 12. What amount should be reported as cost of goods sold in 2022? a. 38,000,000 b. 38,600,000 c. 37,400,000 d. 37,800,000 13. If the company is using direct write off method, what amount should be reported as cost of goods sold in 2021? a. 38,000,000 b. 38,600,000 c. 37,400,000 d. 37,800,000
On January 1, 2022, Roseland Company experienced a decline in the value of inventory resulting in write down from P8,000,000 cost to P7,000,000 net realizable value. The entity used the allowance method to record the necessary adjustment. In 2022, market conditions have improved dramatically. On December 31, 2022, the inventory had a cost of P10,000,000 and net realizable value of P9,600,000. The entity made purchases of P40,000,000 in 2022? 11. How much is the gain on reversal of impairment? a. 400,000 b. 600,000 c. 200,000 d. 0 12. What amount should be reported as cost of goods sold in 2022? a. 38,000,000 b. 38,600,000 c. 37,400,000 d. 37,800,000 13. If the company is using direct write off method, what amount should be reported as cost of goods sold in 2021? a. 38,000,000 b. 38,600,000 c. 37,400,000 d. 37,800,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On January 1, 2022, Roseland Company experienced a decline in the value of inventory
resulting in write down from P8,000,000 cost to P7,000,000 net realizable value. The entity
used the allowance method to record the necessary adjustment. In 2022, market conditions have
improved dramatically. On December 31, 2022, the inventory had a cost of P10,000,000 and
net realizable value of P9,600,000. The entity made purchases of P40,000,000 in 2022?
11. How much is the gain on reversal of impairment?
a. 400,000
b. 600,000
c. 200,000
d. 0
12. What amount should be reported as cost of goods sold in 2022?
a. 38,000,000
b. 38,600,000
c. 37,400,000
d. 37,800,000
13. If the company is using direct write off method, what amount should be reported as cost of
goods sold in 2021?
a. 38,000,000
b. 38,600,000
c. 37,400,000
d. 37,800,000
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