Presented below is a list of items that may or may not be reported as inventory in a company’s December 31 balance sheet. 1. Goods out on consignment at another company’s store- P800,000 2. Goods sold on installment basis- P100,000 3. Goods purchased F.O.B. shipping point that are in transit on December 31- P120,000 4. Goods purchased F.O.B. destination that are in transit on December 31- P200,000 5. Goods sold to another company, for which our company has signed an agreement to repurchase at a set price that covers all costs related to the inventory- P300,000 How much of these items would typically be reported as inventory in the financial statements? A. 1,100,000 B. 1,220,000 C. 1,520,000 D. 800,000
Presented below is a list of items that may or may not be reported as inventory in a company’s December 31 balance sheet.
1. Goods out on consignment at another company’s store- P800,000
2. Goods sold on installment basis- P100,000
3. Goods purchased F.O.B. shipping point that are in transit on December 31- P120,000
4. Goods purchased F.O.B. destination that are in transit on December 31- P200,000
5. Goods sold to another company, for which our company has signed an agreement to repurchase at a set price that covers all costs related to the inventory- P300,000
How much of these items would typically be reported as inventory in the financial statements?
A. 1,100,000
B. 1,220,000
C. 1,520,000
D. 800,000
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