7. The unadjusted physical inventory of ABC Company at December 31, 20X3 was P5,000,000. Other information follows:Goods were received and recorded on January 4, 20X4 with cost of P500,000. These goods were shipped by suppliers on December 29, 20X3, FOB shipping point.Goods in the warehouse costing P1,500,000 were billed to the customer FOB shipping point on December 29, 20X3. The goods were included in inventory because they were shipped on January 3, 20X4. How much should ABC report as inventory on its December 31, 20X3 balance sheet?a. 4,000,000b. 7,000,000c. 5,000,000d. 5,500,000

FOB shipping point : It is a commercial term for the transfer of goods through shipment, this…

Answered: The unadjusted physical inventory of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

7. The unadjusted physical inventory of ABC Company at December 31, 20X3 was P5,000,000. Other information follows:

Goods were received and recorded on January 4, 20X4 with cost of P500,000. These goods were shipped by suppliers on December 29, 20X3, FOB shipping point.
Goods in the warehouse costing P1,500,000 were billed to the customer FOB shipping point on December 29, 20X3. The goods were included in inventory because they were shipped on January 3, 20X4. How much should ABC report as inventory on its December 31, 20X3 balance sheet?

a. 4,000,000

b. 7,000,000

c. 5,000,000

d. 5,500,000

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Expert Solution

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Financial Reporting in Hyperinflationary Economies

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