The Shop Company sells TVs. The perpetual inventory was stated as P 305,000 on the books at December 31, 2017. At the close of the year, a new approach for compiling inventory was used and apparently a satisfactory cut-off for preparation of financial statements was not made. Some events that occurred are as follows: a. TVs shipped to a customer January 2, 2018; costing P 50,000 were included in inventory at December 31, 2017. The sale was recorded in 2018. b. TVs costing P 100,000 received December 30, 2017, were recorded as received on January 2, 2018. c. TVs received during 2017 costing P 46,000 were recorded twice in the inventory account. d. TVs shipped to a customer December 28, 2017, f.o.b. shipping point, which cost P 150,000, were not received by the customer until January 2018. The TVs were included in the ending inventory. e. TVs on hand that cost P 61,000 were never recorded on the books. Compute the correct inventory at December 31, 2017. P 259,000 P 220,000 P 270,000 P 320,000
The Shop Company sells TVs. The perpetual inventory was stated as P 305,000 on the books at December 31, 2017. At the close of the year, a new approach for compiling inventory was used and apparently a satisfactory cut-off for preparation of financial statements was not made. Some events that occurred are as follows: a. TVs shipped to a customer January 2, 2018; costing P 50,000 were included in inventory at December 31, 2017. The sale was recorded in 2018. b. TVs costing P 100,000 received December 30, 2017, were recorded as received on January 2, 2018. c. TVs received during 2017 costing P 46,000 were recorded twice in the inventory account. d. TVs shipped to a customer December 28, 2017, f.o.b. shipping point, which cost P 150,000, were not received by the customer until January 2018. The TVs were included in the ending inventory. e. TVs on hand that cost P 61,000 were never recorded on the books. Compute the correct inventory at December 31, 2017. P 259,000 P 220,000 P 270,000 P 320,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The Shop Company sells TVs. The perpetual inventory was stated as P 305,000 on the books at December 31, 2017. At the close of the year, a new approach for compiling inventory was used and apparently a satisfactory cut-off for preparation of financial statements was not made. Some events that occurred are as follows:
a. TVs shipped to a customer January 2, 2018; costing P 50,000 were included in inventory at December 31, 2017. The sale was recorded in 2018.
b. TVs costing P 100,000 received December 30, 2017, were recorded as received on January 2, 2018.
c. TVs received during 2017 costing P 46,000 were recorded twice in the inventory account.
d. TVs shipped to a customer December 28, 2017, f.o.b. shipping point, which cost P 150,000, were not received by the customer until January 2018. The TVs were included in the ending inventory.
e. TVs on hand that cost P 61,000 were never recorded on the books. Compute the correct inventory at December 31, 2017.
- P 259,000
- P 220,000
- P 270,000
- P 320,000
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