EEE Company used a perpetual inventory system. At the end of 2020, the inventory account was P360,000 and P30,000 of those goods included in ending inventory were purchased FOB shipping point and did not arrive until 2021. Purchases in 2021 were P3,000,000. The perpetual inventory records showed an ending inventory of P420,000 for 2021. A physical count at the end of 2021 showed an inventory of P380,000. Inventory shortages are included in cost of goods sold.

EEE Company used a perpetual inventory system. At the end of 2020, the inventory account was P360,000 and P30,000 of those goods included in ending inventory were purchased FOB shipping point and did not arrive until 2021. Purchases in 2021 were P3,000,000. The perpetual inventory records showed an ending inventory of P420,000 for 2021. A physical count at the end of 2021 showed an inventory of P380,000. Inventory shortages are included in cost of goods sold.

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter11: Work Sheet And Adjusting Entries

Section: Chapter Questions

Problem 3E: Basga Company uses the periodic inventory system. Beginning inventory amounted to 241,072. A...

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