The December 31, 2019 trial balance for ABC Company included the following: purchases, P40,000; purchase returns and allowances, P2,000; transportation in, P3,000; ending inventory, P8,000. What was the cost of goods sold for 2019? a. P39,000 b. P38,000 c. P32,000 d. P33,000

The December 31, 2019 trial balance for ABC Company included the following: purchases, P40,000; purchase returns and allowances, P2,000; transportation in, P3,000; ending inventory, P8,000. What was the cost of goods sold for 2019? a. P39,000 b. P38,000 c. P32,000 d. P33,000

Name: The December 31, 2019 trial balance for ABC Company included the follo
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Description: The December 31, 2019 trial balance for ABC Company included the following: purchases, P40,000; purchase returns and allowances, P2,000; transportation in, P3,000; ending inventory, P8,000. What was the cost of goods sold for 2019?a. P39,000b. P38,00

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

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Definition Definition Statement that shows the ending balance of all the ledger accounts of a firm at the end of the accounting period. The trial balance is prepared after all the entries have been posted to the ledger accounts and assists in preparing the final accounts of a firm.

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