PROBLEM 12 (Adapted) During 2020, Eddie Furniture Company purchases a carload of wicker chairs. The manufacturer sell the chairs to the company for a lump sum of P59,850 because it is discontinuing manufacturing operations and wishes to dispose of its entire stock. Three types of chairs are included in the carload The three types and the estimated selling price for each are listed below: Туре No. of Chairs Est. Selling Price Each Lounge Chairs Armchairs 400 P90 300 80 Straight Chairs 700 50 During 2020, Eddie sells 200 lounge chairs, 100 armchairs, and 120 straight chars. Requirement: 1. What is the amount of gross profit realized in 2020? 2. What is the amount of inventory of unsold straight chairs on December 31, 2020?

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.