Reference no: EM132616323
Question - The current asset of the section of the statement of financial position prepared by the accountant of Peridot Company as of December 31, 2017 follows:
Current assets: Cash P 536,000
Financial assets at fair value through profit or loss 500,000
Accounts receivable 3,285,000
Inventory 3,500,000
Other current assets 140,000
Total current assets P7,961,000
The company determines its inventory at year-end by physical count. An examination of the accounts showed the following:
a. On December 28, 2017, the company issued and recorded a check payable to a vendor dated January 15, 2018 in the amount of P80,000.
b. The financial assets were purchased during the year 2017 for P500,000. Fair value at December 31 was P550,000.
c. Accounts receivable includes selling price of goods invoiced to a customer on December 27, 2017. The goods cost P120,000 and were billed at 150% of cost. The goods were shipped FOB destination on December 27, 2017 and were received by the customer on January 5, 2018.
d. There were goods out on consignment at sales price of P225,000. The company's gross profit on consigned goods is 40% of sales price.
e. Other current assets represent the total cost of shares of Peridot Company intended for resale in 2018.
Required - Determine the correct amount of each current asset account.