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 ₱360,000, with an estimated selling price of P400,000. Costs expected to be incurred to sell the inventory is 15% of the selling price.  What is the December 31, 2022 balance of allowance for inventory write-down? [A] 10,000 [B] 20,000 [C] 30,000 [D] 0

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

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 ₱360,000, with an estimated selling price of P400,000. Costs expected to be incurred to sell the inventory is 15% of the selling price.

 What is the December 31, 2022 balance of allowance for inventory write-down? [A] 10,000 [B] 20,000 [C] 30,000 [D] 0

Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Accounting for discounts
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education