3. 4. PC Exchange Company, a computer store in Greenhills, specializes in the sale of IBM...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
3. 4. PC Exchange Company, a computer store in Greenhills, specializes in the sale of IBM compatibles and software packages and had the following transactions with one of its suppliers: Purchases of IBM compatibles Purchases of commercial software packages Purchase returns and allowances Purchase discounts taken Purchases were made throughout the year on terms 3/10, n/30. All returns and allowances took place within 5 days of purchase and prior to any payment of account. How much were the discounts lost? a. P19,680 b. P19,200 O a. b. O The inventory on hand on December 31, 2006 for PC Lounge is valued at a cost of P1,500,000. The following items were not included in the inventory: O C. d. - P656,000 180,000 16,000 5,400 P13,800 P14,280 Purchases of goods still in transit, shipped FOB destination, with price of P150,000 which includes freight charge of P25,000. Goods held on consignment by PC Lounge at a sales price of P100,000, excluding a 20% commission on the sales price. Freight paid by PC Lounge is P10,000. Goods sold in transit FOB destination with invoice price of P245,000 which includes freight charge of P20,000 to deliver the goods. Purchases of goods still in transit FOB shipping point with invoice of P300,000. Freight cost, P30,000. P2,095,000 P2,080,000 Goods out on consignment with sales price of P150,000. Shipping cost to consignee is P15,000. The corporation's policy on its selling price is 150% of cost. What is the correct inventory at December 31, 2006? P2,050,000 P1,500,000 C. d. 3. 4. PC Exchange Company, a computer store in Greenhills, specializes in the sale of IBM compatibles and software packages and had the following transactions with one of its suppliers: Purchases of IBM compatibles Purchases of commercial software packages Purchase returns and allowances Purchase discounts taken Purchases were made throughout the year on terms 3/10, n/30. All returns and allowances took place within 5 days of purchase and prior to any payment of account. How much were the discounts lost? a. P19,680 b. P19,200 O a. b. O The inventory on hand on December 31, 2006 for PC Lounge is valued at a cost of P1,500,000. The following items were not included in the inventory: O C. d. - P656,000 180,000 16,000 5,400 P13,800 P14,280 Purchases of goods still in transit, shipped FOB destination, with price of P150,000 which includes freight charge of P25,000. Goods held on consignment by PC Lounge at a sales price of P100,000, excluding a 20% commission on the sales price. Freight paid by PC Lounge is P10,000. Goods sold in transit FOB destination with invoice price of P245,000 which includes freight charge of P20,000 to deliver the goods. Purchases of goods still in transit FOB shipping point with invoice of P300,000. Freight cost, P30,000. P2,095,000 P2,080,000 Goods out on consignment with sales price of P150,000. Shipping cost to consignee is P15,000. The corporation's policy on its selling price is 150% of cost. What is the correct inventory at December 31, 2006? P2,050,000 P1,500,000 C. d.
Expert Answer:
Answer rating: 100% (QA)
Lets solve this stepbystep 3 Discounts lost Discounts not taken Purchases were made on terms 310 n30 ... View the full answer
Related Book For
Posted Date:
Students also viewed these finance questions
-
a)Suppose company A plans to acquire company B, and suppose that the beta of B is different from the beta of A. How are the company's pre-merger betas used in valuing the acquisition? How would...
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
33. Monker Dining Room Furniture manufactures two models of dining table sets: Traditional brand Contemporary. Manufacturing requirements are as follows: um boxi mod sq to get YTO TRADITIONAL...
-
Explain Moore's law.
-
1. List the three broad management skill categories and explain which skills are needed most for each of the Camp Bow Wow leaders highlighted in the video. 2. Which activities at Camp Bow Wow require...
-
Never Flake Company, which operated in the northeastern part of the United States, provided a rust-prevention coating for the underside of new automobiles. The company advertised widely and offered...
-
Spangenberg Products manufactures computer cases. All material is added at the start of production and overhead is applied to each product at the rate of 70 percent of direct labor cost. At the...
-
Accounting for Stock Options On April 1 of Year 1 , Badger Corp. announced a stock option incentive plan for its top executives. The plan provides certain executives stock options for the company's...
-
Norm and Sheila consume only meat pies and beer. Meat pies used to cost $2 each and beer was $1 per can. Their gross income used to be $60 per week, but they had to pay an income tax of $10. Use red...
-
The Osprey Club wants to forecast the number of T-shirts they want to print for the upcoming new admissions. They want to provide the T-shirts on the welcome day. Looking at the previous year's...
-
Code a method called encrypt to encrypt a String by swapping each pair of its adjacent characters. In the case of Strings with an odd number of characters pad them with a trailing space before...
-
Solve for w. -38 5w-3 Simplify your answer as much as possible. W = 0
-
Write a contract for your employer, Grill Corp. Grill Corp. is based in Fayetteville, AR and manufactures backyard grills. Grill Corp. wants to hire Media Co. to create radio advertisements to be...
-
Discuss the efficient markets hypothesis (EMH) and its various forms - what is the theory about? What is your own view of the EMH & why? Compare any two exchanges such as NASDAQ & NYSE (does not need...
-
5) The excel file Surface Temperature.xls contains surface temperature variability in a 24 hour period. Determine the total energy flux density for the following the materials: steel, asphalt,...
-
Take-a-Break Travel Company offers spring break travel packages to college students. Two of its packages, a 7-day, 6-night trip to Cancun and a 5-day, 4-night trip to Jamaica, have the following...
-
Define a traverse in Surveying?
-
Find the future value of the following ordinary annuities: a. $400 per year for 10 years at 10 percent b. $200 per year for five years at 5 percent
-
Your company is considering two mutually exclusive projectsC and Rwhose costs and cash flows are shown in the following table: The projects are equally risky, and their required rate of return is 12...
-
Suppose a firm estimates its required rate of return for the coming year to be 10 percent. What are reasonable required rates of return for evaluating average-risk projects, high-risk projects, and...
-
In a dramatic move, Standard & Poors Ratings Group, the large financial company that evaluates the riskiness of companies debt, downgraded its rating of General Motors and Ford Motor Co. debt to junk...
-
What information do the tangible capital asset turnover ratio, the average age of tangible capital assets, and the return on total assets provide users of financial statements?(Appendix)
-
What factors should be considered when selecting the amortization period for an intangible asset?(Appendix)
Study smarter with the SolutionInn App