Problem 10-17 (IAA) Audacity Company counted the ending inventory on December 31, 2020 and reported the amount of P2,000,000 before any corrections. None of the following items were included when the total amount of the ending inventory was computed: Goods located in the entity's warehouse are on consignment from another entity 150,000 * Goods sold by the entity and shipped FOB destination were in transit on December 31, 2020 and received by the customer on January 2, 2021 200,000 * Goods purchased by the entity and shipped FOB shipping point were in transit on December 31, 2020 and received by the entity on January 2, 2021 300,000 Goods sold by the entity and shipped FOB shipping point were in transit on December 31, 2020 and received by the customer on January 2, 2021. 400,000 What amount of inventory should be reported on December 31, 2020? a. 2,500,000 b. 2,350,000 e. 2,900,000 d. 2,750,000
Problem 10-17 (IAA) Audacity Company counted the ending inventory on December 31, 2020 and reported the amount of P2,000,000 before any corrections. None of the following items were included when the total amount of the ending inventory was computed: Goods located in the entity's warehouse are on consignment from another entity 150,000 * Goods sold by the entity and shipped FOB destination were in transit on December 31, 2020 and received by the customer on January 2, 2021 200,000 * Goods purchased by the entity and shipped FOB shipping point were in transit on December 31, 2020 and received by the entity on January 2, 2021 300,000 Goods sold by the entity and shipped FOB shipping point were in transit on December 31, 2020 and received by the customer on January 2, 2021. 400,000 What amount of inventory should be reported on December 31, 2020? a. 2,500,000 b. 2,350,000 e. 2,900,000 d. 2,750,000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 9RE: RE7-8 Johnson Company uses a perpetual inventory system. On October 23, Johnson purchased 100,000 of...
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