Problem 13 Four Company, which maintains it inventory using the perpetual system, had the following balances at the end of the year: Cost of Goods Sold 4,500,000 Net Sales 6,000,000 Inventory 1,200,000 Accounts Payable 3,000,000 Accounts Receivable 4,000,000 Compute the adjusted balances of the above items after considering the following information: -Four consigned to Ellie, at the beginning of December 2020, goods costing P100,000 and paid freight of P5,000. The relevant commission is 5% of the selling price of P200,000. By the end of the year, Ellie has not remitted yet any of the sales but reported on January 5, 2021 that by December 31, 2020, all of the goods were sold. The said inventory was included in the physical count of the company. - The company sold on FOB shipping point goods costing P200,000 at selling price which is 150% of cost on December 29, 2020, sale was recognized on the said date, and goods were excluded from the inventory count. It was later found out that said goods were kept by the sales clerk because it was reserved for the customer and was only shipped on January 3, 2021. - The company sold on FOB destinations goods costing P300,000 at selling price which is 120% of cost on December 26, 2020, sale was recognized on the said date, and goods were excluded from the inventory count. It was later found out that said goods reached the customer on January 6, 2021. - The company sold on FOB shipping point goods costing P100,000 at selling price which is 150% of cost on December 29, 2020, sale was recognized on the said date, and goods were excluded from the inventory count. Goods reached the customer on January 3, 2021. - Four received and recorded an invoice on December 30, 2020 for goods costing P450,000 FOB destination. The company received the inventories on January 3, 2021 but were included in the inventory ending balance.
Problem 13
Four Company, which maintains it inventory using the perpetual system, had the following
balances at the end of the year:
Cost of Goods Sold 4,500,000
Net Sales 6,000,000
Inventory 1,200,000
Accounts Payable 3,000,000
Compute the adjusted balances of the above items after considering the following information:
-Four consigned to Ellie, at the beginning of December 2020, goods costing P100,000 and
paid freight of P5,000. The relevant commission is 5% of the selling price of P200,000. By
the end of the year, Ellie has not remitted yet any of the sales but reported on January 5,
2021 that by December 31, 2020, all of the goods were sold. The said inventory was
included in the physical count of the company.
- The company sold on FOB shipping point goods costing P200,000 at selling price which is
150% of cost on December 29, 2020, sale was recognized on the said date, and goods
were excluded from the inventory count. It was later found out that said goods were kept
by the sales clerk because it was reserved for the customer and was only shipped on
January 3, 2021.
- The company sold on FOB destinations goods costing P300,000 at selling price which is
120% of cost on December 26, 2020, sale was recognized on the said date, and goods
were excluded from the inventory count. It was later found out that said goods reached
the customer on January 6, 2021.
- The company sold on FOB shipping point goods costing P100,000 at selling price which
is 150% of cost on December 29, 2020, sale was recognized on the said date, and
goods were excluded from the inventory count. Goods reached the customer on January
3, 2021.
- Four received and recorded an invoice on December 30, 2020 for goods costing P450,000
FOB destination. The company received the inventories on January 3, 2021 but were
included in the inventory ending balance.
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