Answered: The inventory records of Sixto Corp at…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter13: Accounting For Merchandise Inventory

Section: Chapter Questions

Problem 1MP: Hurst Companys beginning inventory and purchases during the fiscal year ended December 31, 20-2,...

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The inventory records of Sixto Corp at Dec 31, 20X1 show a balance of P260,000. Also the following data.

1. Good costing P10,000 purchased FOB shipping point were not yet recorded because the goods is still in transit. Goods were shipped by the seller on Dec 29 and prepaid the freight of P1,000.

2. Goods costing P16,000 were shipped to customer on Dec 31. Term was FOB shipping point. The goods were still included in the ledger at Dec 31.

3. Goods received on Dec 30 costing P5,000 were recorded in Jan 5, 20X2.

4. Goods costing P20,000 were shipped to a customer on Dec 31. Term was FOB destination. Goods were not included in the ledger.

5. Obsolete goods with no resale value amounting to P4,000 were still included in the ledgers.

How much is the correct inventory?

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