Ayo Company started 2022 with P94,000 of merchandise inventory on hand. During 2022, P400,000 in merchandise was purchased on account with credit terms 1/15, n/45. All discounts were taken. Purchases were all made FOB Origin. Ayo paid freight charges of P7,500. Merchandise with an invoice amount of P5,000 was returned for credit. Cost of goods sold for the year was P380,000. Ayo uses the perpetual inventory system. What is the ending inventory assuming Ayo uses the gross method to record purchases? O 112,490 O 112,550 O 116,500 O 120,300

Ayo Company started 2022 with P94,000 of merchandise inventory on hand. During 2022, P400,000 in merchandise was purchased on account with credit terms 1/15, n/45. All discounts were taken. Purchases were all made FOB Origin. Ayo paid freight charges of P7,500. Merchandise with an invoice amount of P5,000 was returned for credit. Cost of goods sold for the year was P380,000. Ayo uses the perpetual inventory system. What is the ending inventory assuming Ayo uses the gross method to record purchases? O 112,490 O 112,550 O 116,500 O 120,300

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter9: Sales And Purchases

Section: Chapter Questions

Problem 8E: Toby Company had the following sales transactions for March: Mar. 6Sold merchandise on account to...

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