31.At December 31, 2021, the accounting staff of Persimmon Company submitted an inventory list that showed a total of P2,350,000. The following information needs additional analysis to determine whether the items should be included or excluded in inventory: • Merchandise costing P40,000 were transferred to the delivery department on December 28 for shipment on January 3, 2022. This inventory was excluded from the inventory total. • Supplier’s invoice for P18,000 worth of merchandise dated December 27, 2021 was received through the mails on December 30, 2021. Shipment term is FOB destination. Since the goods arrived only on January 4, 2022, the goods were not included in the year-end inventory. • On December 27, 2021, an order for P25,000 worth of merchandise was placed. This was included in the year-end inventory although the goods were received only on January 5, 2022. Seller shipped the goods FOB destination. What is the correct merchandise inventory of Persimmon Company at December 31, 2021? a. 2,365,000 b. 2,183,000 c. 2,190,000 d. 2,350,000
31.At December 31, 2021, the accounting staff of Persimmon Company submitted an inventory list that showed a total of P2,350,000. The following information needs additional analysis to determine whether the items should be included or excluded in inventory: • Merchandise costing P40,000 were transferred to the delivery department on December 28 for shipment on January 3, 2022. This inventory was excluded from the inventory total. • Supplier’s invoice for P18,000 worth of merchandise dated December 27, 2021 was received through the mails on December 30, 2021. Shipment term is FOB destination. Since the goods arrived only on January 4, 2022, the goods were not included in the year-end inventory. • On December 27, 2021, an order for P25,000 worth of merchandise was placed. This was included in the year-end inventory although the goods were received only on January 5, 2022. Seller shipped the goods FOB destination. What is the correct merchandise inventory of Persimmon Company at December 31, 2021? a. 2,365,000 b. 2,183,000 c. 2,190,000 d. 2,350,000
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...
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31.At December 31, 2021, the accounting staff of Persimmon Company submitted an inventory list that showed a total of P2,350,000. The following information needs additional analysis to determine whether the items should be included or excluded in inventory:
• Merchandise costing P40,000 were transferred to the delivery department on December 28 for shipment on January 3, 2022. This inventory was excluded from the inventory total.
• Supplier’s invoice for P18,000 worth of merchandise dated December 27, 2021 was received through the mails on December 30, 2021. Shipment term is FOB destination. Since the goods arrived only on January 4, 2022, the goods were not included in the year-end inventory.
• On December 27, 2021, an order for P25,000 worth of merchandise was placed. This was included in the year-end inventory although the goods were received only on January 5, 2022. Seller shipped the goods FOB destination.
What is the correct merchandise inventory of Persimmon Company at December 31, 2021?
• Merchandise costing P40,000 were transferred to the delivery department on December 28 for shipment on January 3, 2022. This inventory was excluded from the inventory total.
• Supplier’s invoice for P18,000 worth of merchandise dated December 27, 2021 was received through the mails on December 30, 2021. Shipment term is FOB destination. Since the goods arrived only on January 4, 2022, the goods were not included in the year-end inventory.
• On December 27, 2021, an order for P25,000 worth of merchandise was placed. This was included in the year-end inventory although the goods were received only on January 5, 2022. Seller shipped the goods FOB destination.
What is the correct merchandise inventory of Persimmon Company at December 31, 2021?
a. 2,365,000
b. 2,183,000
c. 2,190,000
d. 2,350,000
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