following data concerning inventory. At December 31, 2015, the balance in Zebra's Inventory account was P502,000, and the Allowance for Inventory Writedown had a balance of P32,000. The relevant inventory cost and market data at December 31, 2016, are summarized in the schedule below. Cost Sales Price Normal Replacement Cost Net Realizable Value P87,000 85,000 111,000 197,000 P480,000 Profit P89,000 94,000 125,000 194,000 P502,000 P86,000 92,000 135,000 114,000 P91,500 93,000 129,000 205,000 P518,500 Guitars Xylophones Trumpets Violins P6,400 7,440 11,610 20,500 P45,950 Total P427,000 23. What is the proper balance in the Allowance for Inventory Writedown at December 31, 2016? a. P75,000 b. P22,000 c. P32,000 d. P25,000 24. The adjusting entry on December 31, 2016, to arrive at the proper allowance balance should be a. Allowance for inventory writedown Gain on inventory recovery 7,000 7,000 b. Loss on inventory writedown 7,000 Allowance for inventory writedown 7,000 c. Allowance for inventory writedown Gain on inventory recovery 3,000 3,000 d. Loss on inventory writedown 43,000 Allowance for inventory writedown 43,000
following data concerning inventory. At December 31, 2015, the balance in Zebra's Inventory account was P502,000, and the Allowance for Inventory Writedown had a balance of P32,000. The relevant inventory cost and market data at December 31, 2016, are summarized in the schedule below. Cost Sales Price Normal Replacement Cost Net Realizable Value P87,000 85,000 111,000 197,000 P480,000 Profit P89,000 94,000 125,000 194,000 P502,000 P86,000 92,000 135,000 114,000 P91,500 93,000 129,000 205,000 P518,500 Guitars Xylophones Trumpets Violins P6,400 7,440 11,610 20,500 P45,950 Total P427,000 23. What is the proper balance in the Allowance for Inventory Writedown at December 31, 2016? a. P75,000 b. P22,000 c. P32,000 d. P25,000 24. The adjusting entry on December 31, 2016, to arrive at the proper allowance balance should be a. Allowance for inventory writedown Gain on inventory recovery 7,000 7,000 b. Loss on inventory writedown 7,000 Allowance for inventory writedown 7,000 c. Allowance for inventory writedown Gain on inventory recovery 3,000 3,000 d. Loss on inventory writedown 43,000 Allowance for inventory writedown 43,000
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter9: Working Capital
Section: Chapter Questions
Problem 47P
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