The beginning balances of inventory account and allowance for inventory write-down account of JAMES Inc. is P230,000 and P10,000, respectively. Inventory purchases for 2022 total to P2,445,000, including cash purchases of P866,000. Purchases returns from cash purchases total to P50,000, while returns from purchases on account total to P80,000. Purchase discounts availed by the company is $200,000. Inventory as of December 31, 2022 total to P360,000, with an estimated selling price of P400,000. Costs expected to be incurred to sell the inventory is 15% of the selling price. 8. What is the December 31, 2022 balance of allowance for inventory write-down? [A] 10,000 [B] 20,000 [C] 30,000 [D] 0
The beginning balances of inventory account and allowance for inventory write-down account of JAMES Inc. is P230,000 and P10,000, respectively. Inventory purchases for 2022 total to P2,445,000, including cash purchases of P866,000. Purchases returns from cash purchases total to P50,000, while returns from purchases on account total to P80,000. Purchase discounts availed by the company is $200,000. Inventory as of December 31, 2022 total to P360,000, with an estimated selling price of P400,000. Costs expected to be incurred to sell the inventory is 15% of the selling price. 8. What is the December 31, 2022 balance of allowance for inventory write-down? [A] 10,000 [B] 20,000 [C] 30,000 [D] 0
Chapter1: Financial Statements And Business Decisions
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![The beginning balances of inventory account and allowance for inventory write-down account of JAMES Inc. is $230,000 and
$10,000, respectively. Inventory purchases for 2022 total to #2,445,000, including cash purchases of #866,000. Purchases
returns from cash purchases total to $50,000, while returns from purchases on account total to $80,000. Purchase discounts
availed by the company is $200,000. Inventory as of December 31, 2022 total to P360,000, with an estimated selling price of
P400,000. Costs expected to be incurred to sell the inventory is 15% of the selling price.
8. What is the December 31, 2022 balance of allowance for inventory write-down? [A] 10,000 [B] 20,000 [C] 30,000 [D] 0
LLC](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1e0fbb02-8c9f-414f-bfa1-15076e801222%2Fc2b88e88-c600-4718-867a-1b0644846e06%2F78c0htsi_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The beginning balances of inventory account and allowance for inventory write-down account of JAMES Inc. is $230,000 and
$10,000, respectively. Inventory purchases for 2022 total to #2,445,000, including cash purchases of #866,000. Purchases
returns from cash purchases total to $50,000, while returns from purchases on account total to $80,000. Purchase discounts
availed by the company is $200,000. Inventory as of December 31, 2022 total to P360,000, with an estimated selling price of
P400,000. Costs expected to be incurred to sell the inventory is 15% of the selling price.
8. What is the December 31, 2022 balance of allowance for inventory write-down? [A] 10,000 [B] 20,000 [C] 30,000 [D] 0
LLC
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