Reference no: EM132950004

Questions -

Q1) Amiable Company provided the following data at year-end:

Items counted in the bodega 4,000,000

Items included in the count specifically segregated per sales contract 100,000

Items in receiving department, returned by customer, in good condition 50.000

Items ordered and in the receiving department, invoice not received 400,000

Items ordered, invoice received but goods not received Freight is paid by seller. 300,000.

Items shipped today invoice mailed FOB shipping point 250,000

Items shipped today, invoice mailed FOB destination 150 000

Items currently being used for window display 200,000

Items on counter for sale 800,000

Items in receiving department, refused by us because of damage 180,000

Items included in count, damaged nnd unsalable 50,000

Items in the shipping department 250,000

Required - Compute the correct amount of inventory.

Q2) Myriad Company revealed the following purchase transactions occurred during the last few days of the fiscal year, which ends December 31, 2017, and in the first few days after that date.

1. An invoice for P50,000, FOB shipping point, was received and recorded on December 27. The shipment was received in satisfactory condition on January 2. The merchandise was not included in the inventory.

2. An invoice for P75,000, FOB destination, was received and recorded on December 28. The shipment was received in satisfactory condition on January 3. The merchandise was not included in the inventory.

3. An invoice for P30,000, FOB shipping point, was received and recorded on January 4. The invoice shows that the goods had been shipped on December 28 and the receiving report indicates that the goods had been received on January 4. The merchandise was excluded from inventory.

4. An invoice for P90,000, FOB shipping point, was received on December 15. The receiving report indicates that the goods were received on December 18 but across the face of the report is the notation "merchandise not of the same quality as ordered - returned for credit, December 19". The merchandise was included in the inventory.

5. An invoice for P140,000, FOB destination was received and recorded on January 4. The receiving report indicates that the goods were received on December 29. The merchandise was included in inventory.

Required - Prepare the adjustments on December 31, 2017.