On December 30, 2014, Fine Corporation sold merchandise for P75,000 to Day Company. The terms of the sale were n/30, FOB shipping point. The merchandise was shipped on December 31, 2014, and arrived at Day Company on January 2, 2015. Due to a clerical error, the sale was not recorded until January 2015 and the merchandise, sold at a 25% markup on cost, was included in Fine's inventory at December 31, 2014. As a result, Fine's cost of goods sold for the year ended December 31, 2014 was - Select the correct response: Understated by P15,000 Understated by P60,000 Understated by P75,000 O Correctly stated
On December 30, 2014, Fine Corporation sold merchandise for P75,000 to Day Company. The terms of the sale were n/30, FOB shipping point. The merchandise was shipped on December 31, 2014, and arrived at Day Company on January 2, 2015. Due to a clerical error, the sale was not recorded until January 2015 and the merchandise, sold at a 25% markup on cost, was included in Fine's inventory at December 31, 2014. As a result, Fine's cost of goods sold for the year ended December 31, 2014 was - Select the correct response: Understated by P15,000 Understated by P60,000 Understated by P75,000 O Correctly stated
Financial & Managerial Accounting
13th Edition
ISBN:9781285866307
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter5: Accounting For Merchandising Businesses
Section: Chapter Questions
Problem 5.35EX: Cost of merchandise sold and related items The following data were extracted from the accounting...
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