Entity A bills its branch for merchandise shipments 25% of sale. As of cut-off date, December 31, 2021, the following data were available: Outside Supplier Shipment from Home Office 300,000 Beginning Inventory 120,000 Purchases 360,000 471,000 Ending Inventory 150,000 420,000 The branch returned P15,000 merchandise to the home office acquired at billed price. How much is the amount of the allowance for overvaluation account that was realized in December?

Entity A bills its branch for merchandise shipments 25% of sale. As of cut-off date, December 31, 2021, the following data were available: Outside Supplier Shipment from Home Office 300,000 Beginning Inventory 120,000 Purchases 360,000 471,000 Ending Inventory 150,000 420,000 The branch returned P15,000 merchandise to the home office acquired at billed price. How much is the amount of the allowance for overvaluation account that was realized in December?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 37E: Analyzing the Accounts Casey Company uses a perpetual inventory system and engaged in the following...

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The moving average inventory cost flow assumption is applicable to which of the following inventory systems? Questions M7-6 and M7-7 are based on the following data: City Stationers Inc. had 200 calculators on hand on January 1, 2019, costing 18 each. Purchases and sales of calculators during the month of January were as follows: City uses a periodic inventory system. According to a physical count, 150 calculators were on hand at January 31, 2019.
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