FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Problem 9-1
The ledger of Bella Branch Store shows the following balances on December 31:
Merchandise inventory, January 1 (cost)
Shipments from home office (at cost)
Freight-in
Sales
Sales returns
P400,000
P300,000
P 50,000
P500,000
P 20,000
A closing inventory is taken on December 31, and the sales price for merchandise is
determined to be P520,000.
Required: Compute the cost of ending merchandise inventory for the combined financial
statements.
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Transcribed Image Text:Problem 9-1 The ledger of Bella Branch Store shows the following balances on December 31: Merchandise inventory, January 1 (cost) Shipments from home office (at cost) Freight-in Sales Sales returns P400,000 P300,000 P 50,000 P500,000 P 20,000 A closing inventory is taken on December 31, and the sales price for merchandise is determined to be P520,000. Required: Compute the cost of ending merchandise inventory for the combined financial statements.
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