Problem 9: You are engaged to perfom an audit of the accounts of the Magpakatatag Corporation for the year ended December 31, 2020, and have observed the taking of the physical inventory of the company on December 27, 2020. Only merchandise shipped by the company to customers up to and including December 27 have been removed or excluded from inventory. The inventory as detemined by physical inventory count has been recorded on the books by the company's controller. No perpetual inventory records are maintained. All sales are made on an FOB shipping point basis. The following lists of sales invoices are entered in the sales books for the months of December 2020 and January 2021, respectively. December 2020 SI Date SI Amount Date shipped P25,000 18,000 30,000 12,000 16,000 8,000 20,000 14,000 January 2021 SI Date 12.31.20 12.27.20 01.08.21 01.10.21 SI Amount 7,500 11,000 9,000 5,000 Date shipped 12.29 12.23.20 12.27.20 12.30.20 12.22.20 12.28.20 12.03.20 12.31.20 12.31.20 12.31 12.27 01.05 01.08 12.29 12.05 01.07 12.31 а. į. j. b. 01.04 01.09 12.31 C. d. е. f. g. h. 24. How much sales for the month of December 2020 were erroneously recorded in 2021? 25. How much sales for the month of January 2021 were erroneously recorded in 2020?
Problem 9: You are engaged to perfom an audit of the accounts of the Magpakatatag Corporation for the year ended December 31, 2020, and have observed the taking of the physical inventory of the company on December 27, 2020. Only merchandise shipped by the company to customers up to and including December 27 have been removed or excluded from inventory. The inventory as detemined by physical inventory count has been recorded on the books by the company's controller. No perpetual inventory records are maintained. All sales are made on an FOB shipping point basis. The following lists of sales invoices are entered in the sales books for the months of December 2020 and January 2021, respectively. December 2020 SI Date SI Amount Date shipped P25,000 18,000 30,000 12,000 16,000 8,000 20,000 14,000 January 2021 SI Date 12.31.20 12.27.20 01.08.21 01.10.21 SI Amount 7,500 11,000 9,000 5,000 Date shipped 12.29 12.23.20 12.27.20 12.30.20 12.22.20 12.28.20 12.03.20 12.31.20 12.31.20 12.31 12.27 01.05 01.08 12.29 12.05 01.07 12.31 а. į. j. b. 01.04 01.09 12.31 C. d. е. f. g. h. 24. How much sales for the month of December 2020 were erroneously recorded in 2021? 25. How much sales for the month of January 2021 were erroneously recorded in 2020?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Problem 9:
You are engaged to perfom an audit of the accounts of the Magpakatatag Corporation for the year ended
December 31, 2020, and have observed the taking of the physical inventory of the company on December 27,
2020. Only merchandise shipped by the company to customers up to and including December 27 have been
removed or excluded from inventory. The inventory as detemined by physical inventory count has been
recorded on the books by the company's controller. No perpetual inventory records are maintained. All şales
are made on an FOB shipping point basis. The following lists of sales invoices are entered in the sales books for
the months of December 2020 and January 2021, respectively.
December 2020
SI Amount
P25,000
18,000
30,000
12,000
16,000
8,000
20,000
14,000
January 2021
SI Date
12.23.20
Date shipped
SI Date
į.
j.
k.
I.
SI Amount
7,500
11,000
9,000
5,000
Date shipped
12.29
а.
12.31
12.31.20
b.
12.27.20
12.27
01.05
12.27.20
01.04
12.30.20
C.
d.
01.08.21
01.09
12.22.20
01.08
01.10.21
12.31
е.
12.28.20
12.29
f.
12.03.20
12.05
12.31.20
01.07
g.
h.
12.31.20
12.31
24. How much sales for the month of December 2020 were erroneously recorded in 2021?
25. How much sales for the month of January 2021 were erroneously recorded in 2020?
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