In the course of your examination of the inventory cut-off, both at the beginning and end of the year, you discovered the following facts: BEGINNING OF THE YEAR: 1. Invoices totalling P 3,640 were entered in the voucher register in January, but the goods were received during December. 2. December invoices totalling P 7,960 were enetered in the voucher register in December, but goods were not received until January. END OF THE YEAR 3. Sales of P 5,640 (Cost P 4,230) were made on account on December 31 and the goods delivered at that time, but all entries relating to the sales were made on January 2. 4. Invoices totalling P 5,910 were entered in the voucher register in January, but the goods were received until December. 5. December invoice totalling P 4,210 were entered in the voucher register in January, but the goods were not received until January. 6. Invoices totalling P 12,150 were entered in the voucher register in January, and the goods were received in January, but the invoices were dated December. Make corrections of prior years' income through the Retained Earnings Account, and give the adjusting entries, to be made in your work papers, assuming the company is on a periodic inventory basis.
In the course of your examination of the inventory cut-off, both at the beginning and end of the year, you discovered the following facts: BEGINNING OF THE YEAR: 1. Invoices totalling P 3,640 were entered in the voucher register in January, but the goods were received during December. 2. December invoices totalling P 7,960 were enetered in the voucher register in December, but goods were not received until January. END OF THE YEAR 3. Sales of P 5,640 (Cost P 4,230) were made on account on December 31 and the goods delivered at that time, but all entries relating to the sales were made on January 2. 4. Invoices totalling P 5,910 were entered in the voucher register in January, but the goods were received until December. 5. December invoice totalling P 4,210 were entered in the voucher register in January, but the goods were not received until January. 6. Invoices totalling P 12,150 were entered in the voucher register in January, and the goods were received in January, but the invoices were dated December. Make corrections of prior years' income through the Retained Earnings Account, and give the adjusting entries, to be made in your work papers, assuming the company is on a periodic inventory basis.
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
Chapter8: Inventories: Special Valuation Issues
Section: Chapter Questions
Problem 15P: (Appendix 8.1) Inventory Write-Down The following are the inventories for the years 2019, 2020, and...
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