1. An entity reported inventory on December 31, 2019 at P6,000,000 based on a physical count of {Goods priced at cost and before any necessary year-end adjustments relating tothe following: * Excluded from the physical count were goods billed 10 a customer FOB shipping point on December 30, 2019. These goods had a cost of P125,000 and were picked up by the carrier on January 15, 2020, | * Goods shipped FOB shipping point on December 31, 2019 which are being held for the custome ocala the extoner convenience wih som of P200,000 were aided in the | count. * Goods with invoice cost of P300,000 shipped FOB shipping point on December 31,2019 from ' @ vendor were received on January 15, 2020 ‘What amount should be reported as inventory on December 31, 20197 2. Anentity incurred the following costs during the current year: ‘Cost of purchases based on invoices 5,000,000 Trade discount already deducted from invoices 500,000 Import duties 400,000 Freight and insurance on purchases {600,000 Other handling costs on imports 100,000 Commission paid to agents for arranging imports 200,000 Sales commission paid to sales agents 300,000 Salaries of accounting department 1,000,000 ‘After sales warranty costs 250,000 ‘What is the total cost of purchases? An entity included the following items in inventory at year-end: Goods out on consignment at sale price, including 40% markup on cost 1,400,000 ‘Goods purchased in transit, shipped FOB destination 1,200,000 ‘Goods held on consignment by the entity ‘900,000 ‘At what amount should the inventory at year-end be reduced? 4. On June 1, 2019, an entity sold merchandise with a list price of P5,000,000 to a customer. The ‘entity allowed trade discounts of 20% and 10%. Credit terms were ‘5/10, n/30 and the sale was made FOB shipping point. The entity prepaid P100,000 of delivery cost for the customer as an accommodation. On June 11, 2019, what is the full remittance from the customer?5. On July 1, 2019, an entity recorded purchases of P3,000,000 and P2,000,000 under credit terms of 2/15, net 30. The payment on the P3,000,000 purchase was remitted on July 16, The payment on. the P2,000,000 purchase was remitted on July 31. What amount of purchases should be included in the determination of cost of goods available for sale? 1. Under gross method? 2. Under net method? 6. An entity reported accounts payable of P4,000,000 on December 31, 2019 before considering the following data: * Goods shipped to the entity on December 31, 2019 FOB shipping point were lost in transit. The invoice cost of P100,000 was not recorded. On January 15, 2020, the entity filed @ P100,000 claim against the common carier. * On December 31, 2019, a vendor authorized the entity to retum for full credit goods shipped and billed at P150,000 on December 15, 2019. The retumed goods were shipped by the entity con December 31, 2019. A PiS0,000 credit memo was received and recorded by the entity on January 1S, 2020, * On December 31, 2019, the entity had « P500,000 debit balance in accounts payable to a supplier resulting from an advance payment for goods to be manufactured to the entity's specifications. ‘What amount should be reported as accounts payable on December 31, 2019? 7. An entity had usual sales torms of net 60 days, FOB shipping point. Sales, net of returns and allowances totaled P5,000,(0 for 2019 before year-end adjustment. * Goods with an invoice amount of 200,000 were billed to a customer on January 15, 2020. The goods were shipped on Decembcr 3!, 2019. * On January 5, 2020, a customer notified the entity that goods billed and shipped on December 31, 2019 were lost in transit, The invoice amount was P50,000. * On Decemider 31, 2019. ti entity authorized a customer te return, for full credit goods shipped and billed at P300,000 er December 15, 2019. The returned goods were received by the entity fon January 15, 2920 arzd P100,000 credit memo was issued on the same date, ‘What amount should be reperted as net sales for 2019? 8. On October 1, 2619, an entity sold 100,000 gallons of beating oil at PSO per gallon. Fifty thousand gallons were delivered n Deceraber 15, 2019 and the rentaining Sv,000 gallons were delivered on January 15, 2020. Pa; ment terns were 36% due on October 1, 2019, 25% on the first delivery and the remaining 25% due on the second delivery. What amount of sales revenue should be recognized in 2019?