you found the following information relating to certain inventory transactions from your observation of the client’s physical count and review of sales and purchases cutoff: a. Goods costing P180,000 were received from a vendor on January 3, 2021. The goods were not included in the physical count. The related invoice was received and recorded on December 30, 2020. The goods were shipped on December 31, 2020, terms FOB shipping point. b. Goods costing P200,000, sold for P300,000, were shipped on December 31, 2020, and were received by the customer on January 2, 2021. The terms of the invoice were FOB shipping point. The goods were included in the ending inventory for 2020 and the sale was recorded in 2021. c. The invoice for goods costing P150,000 was received and recorded as a purchase on December 31, 2020. The related goods shipped FOB destination were received on January 2, 2021 but were included in the physical inventory as goods in transit. d. A P600,000 shipment of goods to a customer on December 30, 2020, terms FOB destination, was recorded as a sale upon shipment. The goods, costing P400,000 and delivered to the customer on January 6, 2021, were not included in the 2020 ending inventory. e. Goods valued at P250,000 are on consignment from a vendor. These goods are included in the physical inventory. f. Goods valued at P160,000 are on consignment with a customer. These goods are not included in the physical inventory. The inventory as of December 31, 2020 is understated by
you found the following information relating to certain inventory transactions from your observation of the client’s physical count and review of sales and purchases cutoff:
a. Goods costing P180,000 were received from a vendor on January 3, 2021. The goods were not included in the physical count. The related invoice was received and recorded on December 30, 2020. The goods were shipped on December 31, 2020, terms FOB shipping point.
b. Goods costing P200,000, sold for P300,000, were shipped on December 31, 2020, and were received by the customer on January 2, 2021. The terms of the invoice were FOB shipping point. The goods were included in the ending inventory for 2020 and the sale was recorded in 2021.
c. The invoice for goods costing P150,000 was received and recorded as a purchase on December 31, 2020. The related goods shipped FOB destination were received on January 2, 2021 but were included in the physical inventory as goods in transit.
d. A P600,000 shipment of goods to a customer on December 30, 2020, terms FOB destination, was recorded as a sale upon shipment. The goods, costing P400,000 and delivered to the customer on January 6, 2021, were not included in the 2020 ending inventory.
e. Goods valued at P250,000 are on consignment from a vendor. These goods are included in the physical inventory.
f. Goods valued at P160,000 are on consignment with a customer. These goods are not included in the physical inventory.
The inventory as of December 31, 2020 is understated by
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