Problem A: Slytherin Corporation is a small trading company that uses a periodic inventory system to keep track of its goods. Total inventory at year's end (December 31, 2021) was P500,000, according to the physical count conducted at the evening of December 31. The company also gave the following details on recent sales (steady 25% profit margin based on sales) and purchases made near the end of the year: a. Purchased goods worth P30,000 from a supplier on December 29, 2021, and got them on January 2, 2022 under FOB Shipping Point. b. Purchased goods worth P50,000 from a seller on December 30, 2021, and got them on January 4, 2022 under FOB Destination. c. Purchased P45,000 worth of goods from a seller on December 26, 2021, and got them on December 30, 2021, under FOB Shipping Point. d. Purchased items worth P60,000 from a shop on December 28, 2021, and got them on December 31, 2021, under FOB Destination. e. On December 24, 2021, the company shipped products to a customer for P40,000, and they were delivered on January 5, 2022 under FOB Shipping Point. f. On December 31, 2021, the company shipped goods to a customer for P25,000, and they were delivered on January 1, 2022 under FOB Destination.

Problem A: Slytherin Corporation is a small trading company that uses a periodic inventory system to keep track of its goods. Total inventory at year's end (December 31, 2021) was P500,000, according to the physical count conducted at the evening of December 31. The company also gave the following details on recent sales (steady 25% profit margin based on sales) and purchases made near the end of the year: a. Purchased goods worth P30,000 from a supplier on December 29, 2021, and got them on January 2, 2022 under FOB Shipping Point. b. Purchased goods worth P50,000 from a seller on December 30, 2021, and got them on January 4, 2022 under FOB Destination. c. Purchased P45,000 worth of goods from a seller on December 26, 2021, and got them on December 30, 2021, under FOB Shipping Point. d. Purchased items worth P60,000 from a shop on December 28, 2021, and got them on December 31, 2021, under FOB Destination. e. On December 24, 2021, the company shipped products to a customer for P40,000, and they were delivered on January 5, 2022 under FOB Shipping Point. f. On December 31, 2021, the company shipped goods to a customer for P25,000, and they were delivered on January 1, 2022 under FOB Destination.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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