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The accounting staff of Yellow Ribbon Company submitted an inventory list at December 31, 2019 which showed a total of P5,000,000. The following information that may or may not be relevant to the inventory value submitted, are given below and on the next page. Excluded from the inventory were merchandise costing P80,000 because they were transferred to the delivery department for packaging on December 28 to be shipped on January 2, 2020. The bill of lading and its import documents on merchandise were delivered by the bank and the trust receipt accepted by the company on December 26, 2019. Taxes and duties have been paid on this shipment but the customs broker has not delivered the merchandise until January 7, 2020. Delivered cost of shipment totaled P800,000. This shipment was not included in the inventory in December 2019. A review of the company's purchase orders shows a commitment to buy P100,000 worth of merchandise. This was not included in the inventory because the goods were received on January 3, 2020. Suppliers' invoice for P30,000 worth of merchandise dated December 28, 2019 was received thru the mails on December 30, 2019 although the goods arrived only January 4, 2020. Shipment term is FOB shipping point. This item was included on Decembe 31 2019 inventory by the company.

The accounting staff of Yellow Ribbon Company submitted an inventory list at December 31, 2019 which showed a total of P5,000,000. The following information that may or may not be relevant to the inventory value submitted, are given below and on the next page. Excluded from the inventory were merchandise costing P80,000 because they were transferred to the delivery department for packaging on December 28 to be shipped on January 2, 2020. The bill of lading and its import documents on merchandise were delivered by the bank and the trust receipt accepted by the company on December 26, 2019. Taxes and duties have been paid on this shipment but the customs broker has not delivered the merchandise until January 7, 2020. Delivered cost of shipment totaled P800,000. This shipment was not included in the inventory in December 2019. A review of the company's purchase orders shows a commitment to buy P100,000 worth of merchandise. This was not included in the inventory because the goods were received on January 3, 2020. Suppliers' invoice for P30,000 worth of merchandise dated December 28, 2019 was received thru the mails on December 30, 2019 although the goods arrived only January 4, 2020. Shipment term is FOB shipping point. This item was included on Decembe 31 2019 inventory by the company.

Financial Accounting
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter6: Accounting For Merchandising Businesses
Section: Chapter Questions
Problem 9PA: On December 31, 2019, the balances of the accounts appearing in the ledger of Wyman Company are as...
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The accounting staff of Yellow Ribbon Company submitted an inventory list at December 31, 2019 which showed a total of P5.000,000. The following information that may or may not be relevant to the inventory value submitted, are given below and on the next page. Excluded from the inventory were merchandise costing P80,000 because they were transferred to the delivery department for packaging on December 28 to be shipped on January 2, 2020. The bill of lading and its import documents on merchandise were delivered by the bank and the trust receipt accepted by the company on December 26, 2019. Taxes and duties have been paid on this shipment but the customs broker has not delivered the merchandise until January 7, 2020. shipment totaled P800,000. This shipment was not included in the inventory in December 2019. Delivered cost of A review of the company's purchase orders shows a commitment to buy P100,000 worth of merchandise. This was not included in the inventory because the goods were received on January 3, 2020. Suppliers' invoice for P30,000 worth of merchandise dated December 28, 2019 was received thru the mails on December 30, 2019 although the goods arrived only January 4, 2020. Shipment term is FOB shipping point. This item was included on December 31, 2019 inventory by the company. Goods valued at P20,000 were received on December 28, 2019 for approval by Yellow Ribbon Company. included this merchandise in the list but did not place any value on it. On January 4, 2020, the company informed the supplier by long distance telephone of the acceptance of the goods and the supplier's invoice was received on January 7, 2020. The inventory team order for P25,000 worth of On December 27, 2019 an merchandise was placed. This was included in the year-end inventory although it was received only on January 5, 2020. Seller shipped goods FOB destination. The correct merchandise inventory at December 31, 2019 of Yellow Ribbon Company was
Transcribed Image Text:The accounting staff of Yellow Ribbon Company submitted an inventory list at December 31, 2019 which showed a total of P5.000,000. The following information that may or may not be relevant to the inventory value submitted, are given below and on the next page. Excluded from the inventory were merchandise costing P80,000 because they were transferred to the delivery department for packaging on December 28 to be shipped on January 2, 2020. The bill of lading and its import documents on merchandise were delivered by the bank and the trust receipt accepted by the company on December 26, 2019. Taxes and duties have been paid on this shipment but the customs broker has not delivered the merchandise until January 7, 2020. shipment totaled P800,000. This shipment was not included in the inventory in December 2019. Delivered cost of A review of the company's purchase orders shows a commitment to buy P100,000 worth of merchandise. This was not included in the inventory because the goods were received on January 3, 2020. Suppliers' invoice for P30,000 worth of merchandise dated December 28, 2019 was received thru the mails on December 30, 2019 although the goods arrived only January 4, 2020. Shipment term is FOB shipping point. This item was included on December 31, 2019 inventory by the company. Goods valued at P20,000 were received on December 28, 2019 for approval by Yellow Ribbon Company. included this merchandise in the list but did not place any value on it. On January 4, 2020, the company informed the supplier by long distance telephone of the acceptance of the goods and the supplier's invoice was received on January 7, 2020. The inventory team order for P25,000 worth of On December 27, 2019 an merchandise was placed. This was included in the year-end inventory although it was received only on January 5, 2020. Seller shipped goods FOB destination. The correct merchandise inventory at December 31, 2019 of Yellow Ribbon Company was
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