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The following purchase transactions occurred during the last few days of Yellow Orange Company's business year, which ends October 31, or in the first few days after that date. A periodic inventory system is used. 1. An invoice for P30,000, terms fob shipping point, was received and entered November 1. The invoice shows that the material was shipped October 29, but the receiving report indicates receipts of goods on November 3. 2. An invoice for P27,000, terms fob destination, was received and entered November 2. The receiving report indicates that the goods were received October 29. 3. An invoice for P31,500, terms fob shipping point, was received October 15 but never entered. Attached to it is a receiving report indicating that the goods were received October 18. Across the face of the receiving report is the following notation:" Merchandise not of same quality as ordered - returned for credit October 19." 4. An invoice for P36,000, terms fob shipping point, was received and entered October 27. The receiving report attached to the invoice indicates that the shipment was received October 27 in satisfactory condition. 5. An invoice for P51,000, terms fob destination, was received and entered October 28. The receiving report indicates that the merchandise was received November 2. Before preparing financial statements for the year, you are instructed to review these transactions and to determine whether any correcting entries are required and whether the inventory of P775,000 determined by physical count on October 31 should be changed. Requirement: Complete the schedule shown on the following page, and state the correct inventory at October 31. Assume that the books have not been closed. Trans. 1. 2. 3. 4. 5. Purchase and Related Payable should be recognized in (month) Purchase and related payable were recognized in (month) Correcting Journal Entries Needed Should Inventory be included in Oct. El? Was Inventory Included in Oct El? Peso Adj. Needed to October El

The following purchase transactions occurred during the last few days of Yellow Orange Company's business year, which ends October 31, or in the first few days after that date. A periodic inventory system is used. 1. An invoice for P30,000, terms fob shipping point, was received and entered November 1. The invoice shows that the material was shipped October 29, but the receiving report indicates receipts of goods on November 3. 2. An invoice for P27,000, terms fob destination, was received and entered November 2. The receiving report indicates that the goods were received October 29. 3. An invoice for P31,500, terms fob shipping point, was received October 15 but never entered. Attached to it is a receiving report indicating that the goods were received October 18. Across the face of the receiving report is the following notation:" Merchandise not of same quality as ordered - returned for credit October 19." 4. An invoice for P36,000, terms fob shipping point, was received and entered October 27. The receiving report attached to the invoice indicates that the shipment was received October 27 in satisfactory condition. 5. An invoice for P51,000, terms fob destination, was received and entered October 28. The receiving report indicates that the merchandise was received November 2. Before preparing financial statements for the year, you are instructed to review these transactions and to determine whether any correcting entries are required and whether the inventory of P775,000 determined by physical count on October 31 should be changed. Requirement: Complete the schedule shown on the following page, and state the correct inventory at October 31. Assume that the books have not been closed. Trans. 1. 2. 3. 4. 5. Purchase and Related Payable should be recognized in (month) Purchase and related payable were recognized in (month) Correcting Journal Entries Needed Should Inventory be included in Oct. El? Was Inventory Included in Oct El? Peso Adj. Needed to October El

Financial Accounting
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter6: Accounting For Merchandising Businesses
Section: Chapter Questions
Problem 9PA: On December 31, 2019, the balances of the accounts appearing in the ledger of Wyman Company are as...
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The following purchase transactions occurred during the last few days of Yellow Orange Company's business year, which ends October 31, or in the first few days after that date. A periodic inventory system is used. 1. An invoice for P30,000, terms fob shipping point, was received and entered November 1. The invoice shows that the material was shipped October 29, but the receiving report indicates receipts of goods on November 3. 2. An invoice for P27,000, terms fob destination, was received and entered November 2. The receiving report indicates that the goods were received October 29. 3. An invoice for P31,500, terms fob shipping point, was received October 15 but never entered. Attached to it is a receiving report indicating that the goods were received October 18. Across the face of the receiving report is the following notation:" Merchandise not of same quality as ordered returned for credit October 19." 4. An invoice for P36,000, terms fob shipping point, was received and entered October 27. The receiving report attached to the invoice indicates that the shipment was received October 27 in satisfactory condition. 5. An invoice for P51,000, terms fob destination, was received and entered October 28. The receiving report indicates that the merchandise was received November 2. Before preparing financial statements for the year, you are instructed to review these transactions and to determine whether any correcting entries are required and whether the inventory of P775,000 determined by physical count on October 31 should be changed. Requirement: Complete the schedule shown on the following page, and state the correct inventory at October 31. Assume that the books have not been closed. Trans. 1. 2. 3. 4. 5. Purchase and Related Payable should be recognized in (month) Purchase and related payable were recognized in (month) Correcting Journal Entries Needed Should Inventory be included in Oct. El? Was Inventory Included in Oct El? Peso Adj. Needed to October El
Transcribed Image Text:The following purchase transactions occurred during the last few days of Yellow Orange Company's business year, which ends October 31, or in the first few days after that date. A periodic inventory system is used. 1. An invoice for P30,000, terms fob shipping point, was received and entered November 1. The invoice shows that the material was shipped October 29, but the receiving report indicates receipts of goods on November 3. 2. An invoice for P27,000, terms fob destination, was received and entered November 2. The receiving report indicates that the goods were received October 29. 3. An invoice for P31,500, terms fob shipping point, was received October 15 but never entered. Attached to it is a receiving report indicating that the goods were received October 18. Across the face of the receiving report is the following notation:" Merchandise not of same quality as ordered returned for credit October 19." 4. An invoice for P36,000, terms fob shipping point, was received and entered October 27. The receiving report attached to the invoice indicates that the shipment was received October 27 in satisfactory condition. 5. An invoice for P51,000, terms fob destination, was received and entered October 28. The receiving report indicates that the merchandise was received November 2. Before preparing financial statements for the year, you are instructed to review these transactions and to determine whether any correcting entries are required and whether the inventory of P775,000 determined by physical count on October 31 should be changed. Requirement: Complete the schedule shown on the following page, and state the correct inventory at October 31. Assume that the books have not been closed. Trans. 1. 2. 3. 4. 5. Purchase and Related Payable should be recognized in (month) Purchase and related payable were recognized in (month) Correcting Journal Entries Needed Should Inventory be included in Oct. El? Was Inventory Included in Oct El? Peso Adj. Needed to October El
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