What is the correct amount of inventory

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Question - The physical count conducted in the warehouse of BANQUIAO Company on December 31, 2019 revealed that merchandise with a total cost of P6,000,000 was on hand on that date. However the following items were excluded from the count

Goods sold to a customer, which are being held for the customer to call for at the customer's convenience with a cost of P300,000.

Inventories held by a lender as a collateral for a P1,000,000 note payable that cost BANQUIAO Company P1,200,000

A packaging case containing a product costing P800.000 was standing in the shipping room when the physical inventory was taken BANQUIAO Company's staff argued that they did not include the inventory in the count because it was marked "hold for shipping instructions" An investigation revealed that the customer's order was dated December 28, 2019, but that the case was shipped and the customer billed on January 2 2020

What is the correct amount of inventory that should be reported in BANQUIAO Company's statement of financial position of December 31, 2019?

Reference no: EM132946224

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