Reference no: EM132605602
Entity A acquires inventories and incurs the following costs:
Purchase price, gross of trade discount, P100,000
Trade discount, P20,000
Non-refundable purchase tax, not included in the purchase price above, P5,000
Freight In (Transportation costs), P15,000
Commission to broker, P2,000
Advertisement costs, 10,000
Question 1: How much is the cost of the inventories purchased?
Option 1: Answer not given
Option 2: P100,000
Option 3: P102,000
Option 4: P122,000
Option 5: P97,000