While  examining the December 31, 2010 financial statements of Dawn Company, the following errors are discovered:   Inventory at January 1 had been overstated by P50,000.;  Inventory at December 31 was understated by P100,000.;  During 2010, Dawn received a P200,000 cash advance from customer for merchandise to be manufactured and shipped during 2011.  The collection was credited to sales revenue.;  The net income reported on the 2010 income statement before reflecting any adjustments for the above items is P5,000,000.  What is the corrected net income for the year ended December 31, 2010?   Choices; 4,950,000 5,150,000 5,100,000 4,850,000

Q: Correct inventory $

A: To determine the correct inventory amount, let's go through each of the given items and adjust the…

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A: 1) Good purchased and sold in the same year as per periodic system are not recorded.  Hence Gross…

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A: Inventory is the amount or value of goods held by the business. It can include raw materials, work…

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A: Inventory means the detailed list or stock of items, goods, or materials held by a business or…

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A:

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A: Prepare a schedule to determine the correct inventory amount as shown below:

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A: Assets, liabilities and stockholders' equity are included in the balance sheet of the company.

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A: Current Ratio = Current Assets / current liabilities   Current Assets = 3,900,000 Current…

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A: Answer) Calculation of Correct Net Income for the year 2021   2021 Net Income After Tax…

Q: Inventory, Beginning P 360,000 Purchases 4,100,000 Inventory, Ending 700,000

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A: Inventory means the stock of goods in which the businessmen deals. Merchandise on hand means the…

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A: Rectification of error - Sometimes few transaction is being recorded incorrectly hence to present…

Q: Acue Company reported current assets of P3,900,000 and current liabilities of P2,000,000 on its…

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Q: In 2016, the internal auditors of Development Technologies, Inc. discovered that a $4 million…

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A: Inventories are very important part of accounting. Inventories set a base for any firm in various…

Q: Gon Incorporated reported its inventory balance on December 31, 2016 at P5,000,000. During the…

A: 1) Purchase and sold in the same year as per the periodic system . No effect should be given 2)…

Q: Bramble Decor did not have a good year, and top management is under pressure to boost reported…

A: Inventory is goods available for sale and raw materials which is used to produce goods available for…

Q: ri Downs, an auditor with Wheeler CPAs, is performing a review of Waterway Company's inventory…

A: The correct inventory amount can be determined by adjusting the reported inventory balance for the…

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.