Reference no: EM133074106

Questions -

Q1. Wilfredo Company included the following items in inventory at year-end:

Goods out on consignment at sale price, including 40% markup on sales 1,400,000

Goods purchased in transit, shipped FOB destination 1,200,000

Goods held on consignment by Wilfredo 900,000

At what amount should the inventory at year-end be reduced?

a. 2,940,000

b. 2,660,000

c. 1,460,000

d. 1,740,000

Q2. Carl Company reported accounts payable of P2,200,000 on December 31, 2016 before considering the following data:

Goods shipped to the entity on December 31, 2016 FOB Shipping Point were lost in transit. The invoice cost of P40,000 was not recorded. January 15, 2017, the entity filed a P40,000 claim against the common carrier

On December 31, 2016, a vendor authorized the entity to return for full credit goods shipped and billed at P70,000 on December 15, 2016. The returned goods were shipped by the entity on December 31, 2016. A P70,000 credit memo was received and recorded by the entity on January 15, 2017.

On December 31, 2016, the entity has a P500,000 debit balance in accounts payable to a supplier resulting from an advance payment for goods to be manufactured to the entity's specifications.

What amount should be reported as accounts payable on December 31, 2016?

a. 2,170,000

b. 2,730,000

c. 2,680,000

d. 2,670,000