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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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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