Run, Inc. conducted a physical count on December 31, 2020, showing merchandise costing P463,000 was on hand at that date. Your examination reveals the following items were excluded from the inventory per count: 1. Merchandise of P20,000 which is being held on consignment 2. Goods costing P39,500 that were shipped FOB shipping point on December 31, 2020. These goods were delivered to the customer on January 6, 2021. 3. Goods costing P16,800 that were shipped FOB destination to a customer on December 29, 2020. The customer received these goods on January 2 2021

Run, Inc. conducted a physical count on December 31, 2020, showing merchandise costing P463,000 was on hand at that date. Your examination reveals the following items were excluded from the inventory per count: 1. Merchandise of P20,000 which is being held on consignment 2. Goods costing P39,500 that were shipped FOB shipping point on December 31, 2020. These goods were delivered to the customer on January 6, 2021. 3. Goods costing P16,800 that were shipped FOB destination to a customer on December 29, 2020. The customer received these goods on January 2 2021

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Description: What is the correct answer to the question? Show solution. Run, Inc. conducted a physical count on December31, 2020, showing merchandise costing P463,000was on hand at that date. Your examination revealsthe following items were excluded from the inve

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter6: Accounting For Merchandising Businesses

Section: Chapter Questions

Problem 9PB: On June 30, 2019, the balances of the accounts appearing in the ledger of Simkins Company are as...

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The following data were extracted from the accounting records of Harkins Company for the year ended April 30, 2019: a. Prepare the cost of merchandise sold section of the income statement for the year ended April 30, 2019, using the periodic inventory system. b. Determine the gross profit to be reported on the income statement for the year ended April 30, 2019. c. Would gross profit be different if the perpetual inventory system was used instead of the periodic inventory system?
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