Problem 11:The GANDA CO is on a calendar year basis. The following data were found during your audit:a. Goods in transit shipped FOB Shipping point on December 28 by a supplier in the amount ofP100,000 had been excluded from the inventory, and further testing revealed that the purchasehad been recorded.b. Goods costing P30,000 had been received, included in inventory, and recorded as a purchase.However, upon your inspection, the goods were found to de defective and would be immediatelyreturned.c. Materials costing P170,000 and billed on December 30 at a selling price of P264,000 had beensegregated in the warehouse for shipment to a customer. The materials had been excluded frominventory as a signed purchase order had been received from the customer, terms FOBdestination.d. Goods costing P70,000 was out on consignment with Gandanva, inc. since the monthly statementfrom Gandanva listed those materials on hand, the items had been excluded from the finalinventory and invoiced on December 31 at P80,000.e. The sale of P150,000 wotshipment on December 31. However, this inventory was found to be included in the finalinventory.of materials costing P120,000 had been shipped FOB point off. Goods costing P100,000 and selling for P140,000 had been segregated, but not shipped atDecember 31, and were not included in the inventory. A review of the customer's purchase orderset forth terms FOB destination. The sale had not been recorded.g. Your client has an invoice from a supplier, tems FOB shipping point, but the goods had notarrived as yet. However, these materials costing P134,000 had been included in the inventorycount, but no entry had been made for their purchase.h. Merchandise costing P200,000 had been recorded as a purchase but not included in inventory.Terms ofsale are Fob shipping point according to the supplier's warehouse which had arrived byDecember 31.Further inspection of the client's records revealed the following December 31 balances: Inventory,P1,350,000; Accounts receivable, P630,000; Accounts payable, P690,000; Sales, P6,032,000;Purchases, P3,150,000; Net income, P727,000. Based on the preceding information, determine theadjusted balances of the following:10. Accounts Receivable11. Purchases12. Net income

FOB Shipping Point: Buyer retains Title and responsibility of goods when the goods are placed by…

The GANDA CO is on a calendar year basis. The following data were found during your audit: a. Goods in transit shipped FOB Shipping point on December 28 by a supplier in the amount of P100,000 had been excluded from the inventory, and further testing revealed that the purchase had been recorded. b. Goods costing P30,000 had been received, included in inventory, and recorded as a purchase. However, upon your inspection, the goods were found to de defective and would be immediately returned. c. Materials costing P170,000. and biled on December 30 at a selling price of P264,000 had been segregated in the warehouse for shipment to a customer. The materials had been excluded from inventory as a signed purchase order had been received from the customer, terms FOB destination. d. Goods costing P70,000 was out on consignment with GandanNa, inc. since the monthly statement from Gandanva, listed those materials on hand, the items had been excluded from the final inventory and invoiced on December 31 at P80,000. e. The sale of P150,000 worth of materials costing P120,000 had been shipped FOB point of shipment on December 31. However, this inventory was found to be included in the final inventory. f. Goods costing P100,000 and selling for P140,000 had been segregated, but not shipped at December 31, and were not included in the inventory. A review of the customer's purchase order set forth terms FOB destination. The sale had not been recorded. 9. Your client has an invoice from a supplier, terms FOB shipping point, but the goods had not arrived as yet. However, these materials costing P134,000 had been included in the inventory count, but no entry had been made for their purchase. h. Merchandise costing P200,000 had been recorded as a purchase but not included in inventory. Terms ofwsale are Fob shipping point according to the supplier's warehouse which had arrived by December 31. Further inspection of the client's records revealed the following December 31 balances: Inventory, P1,350,000; Accounts receivable, P630,000; Accounts payable, P690,000; Sales, P6,032,000; Purchases, P3,150,000; Net income, P727,000. Based on the preceding information, determine the adjusted balances of the following: 10. Accounts Receivable 11. Purchases 12. Net income