Adjust Inventory for Sales Made but Not Shipped

a) Cost of Goods Sold Entry:

Dec 31, 2022

Cost of Goods Sold [Dr.] 20,000
Inventory [Cr.] 20,000

b) Dec 31, 2022

Cost of Goods Sold [Dr.] 8,000
Inventory [Cr.] 8,000

c) Dec 31, 2022

Cost of Goods Sold [Dr.] 6,000
Inventory [Cr.] 6,000

d)Dec 31, 2022

Cost of Goods Sold [Dr.] 24,000
Inventory [Cr.] 24,000

f) Dec 31, 2022

Cost of Goods Sold [Dr.] 40,000
Inventory [Cr.] 40,000

Adjust Inventory for Goods Shipped to Consignee

Dec 31, 2022

Inventory [Dr.] 56,000
Consignment Inventory [Cr.] 56,000

Adjust Inventory for January Sales

Dec 31, 2022
Inventory [Dr.] 80,000
Deferred Revenue [Cr.] 80,000

Case No. 1

​ Cash Received from Discounting:

​
Discount = Face Value x Discount Rate x Time Discount = P600,000 x 12% x
(30/360) [90 days is 3 months, and we assume a 360-day year for simplicity]
Discount = P600,000 x 0.12 x 0.0833 ≈ P7,199.80
 Cash Received = Face Value - Discount Cash Received = P600,000 - P7,199.80
Cash Received = P592,800.20
​ Gain (or Loss) on Notes Receivable Discounting: The gain (or loss) is the
difference between the face value of the note and the cash received.
Gain (or Loss) = Face Value - Cash Received Gain (or Loss) = P600,000 -
P592,800.20 Gain (or Loss) ≈ P7,199.80

So, the corrected values are as follows:

​ Cash received from discounting: Approximately P592,800.20

​ Gain (or loss) on notes receivable discounting: Approximately P7,199.80

Given these computations, the correct answer choices are:

​ Cash received from discounting: (c) P600,207.50

​ Gain (or loss) on notes receivable discounting: (c) P13,500