Reference no: EM132973850

Questions -

Q1. The following information was derived' from the accounting records of Geraldine Company for the current year:

Warehouse Consignees

Beginning inventory 1,100,000 120,000

Purchases 4,800,000 600,000

Freight in 100,000

Transportation to consignees 50,000

Freight out 300,000 80,000

Ending inventory 1,450,000 200,000

What is the cost of goods sold for the current year?

Q2. On July 1, 2012, Irene Company recorded P2,000,000 under credit terms of 2/15, net 30. The payment due on the P3,000,000 purchase was remitted on July 16. The payment due on the P2,000,000 purchase was remitted on July 31 Under the gross m e t h o d and n e t method, respectively, these purchases should be included at what amount in the determination of cost of goods available for sale?

a. 4,900,000 and 4,940,000

b. 4,900,000 and 5,000,00

c. 4,940,000 and 4,900,000

d. 5,000,000 and 4,900,000

Q3. The accounts payable balance of Rona Company was P2,200,000 on December 31, 2.012 before considering the following data

Goods shipped to the entity on December 31, 2012 FOB shipping point were lost in transit. The invoice cost of P40,000 was not recorded. On January. 15, 2013, the entity filed a P40,000 claim against the common carrier

On December 30, 2012, a vendor Authorized the entity to return for full credit goods shipped and billed at P70,000 on December 15. 2012. The returned goods were shipped by the entity on December 31, 2012. A P70,000 credit memo was received and recorded by the entity on January 15, 2013.

Goods with an invoice cost of P50,000 shipped to the entity FOB destination on December 26, 2012 were received on January 15, 2013.

What amount should be reported as accounts payable on December 31, 2012?

A. 2,170,000

B. 2,230,000

C. 2,180,000

D. 2,280,000