Vogts Company sells TVs. The perpetual inventory was stated as P 28,500 on the books at December 31, 2020. 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. TVs shipped to a customer January 2, 2021 costing P 5,000 were included in inventory at December 31, 2020. The sale was recorded in 2021.TVs costing P 12,000 received December 30, 2020, were recorded as received on January 2, 2021.TVs received during 2020 costing P 4,600 were recorded twice in the inventory account.TVs shipped to a customer December 28, 2020, f.o.b. shipping point, which cost P 10,000, were not received by the customer until January 2021. The TVs were included in the ending inventory.TVs on hand that cost P 6,100 were never recorded on the books. InstructionsCompute the correct inventory at December 31, 2020.

Perpetual inventory system: The method or system of maintaining, recording, and adjusting the…

Answered: Vogts Company sells TVs. The perpetual…

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter6: Accounting For Merchandising Businesses

Section: Chapter Questions

Problem 9PA: On December 31, 2019, the balances of the accounts appearing in the ledger of Wyman Company are as...

See similar textbooks

Related questions

Question

Vogts Company sells TVs. The perpetual inventory was stated as P 28,500 on the books at December 31, 2020. 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.

TVs shipped to a customer January 2, 2021 costing P 5,000 were included in inventory at December 31, 2020. The sale was recorded in 2021.
TVs costing P 12,000 received December 30, 2020, were recorded as received on January 2, 2021.
TVs received during 2020 costing P 4,600 were recorded twice in the inventory account.
TVs shipped to a customer December 28, 2020, f.o.b. shipping point, which cost P 10,000, were not received by the customer until January 2021. The TVs were included in the ending inventory.
TVs on hand that cost P 6,100 were never recorded on the books.

Instructions

Compute the correct inventory at December 31, 2020.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

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