Identify whether the merchandise described should be INCLUDED or EXCLUDED in the Inventory on December 31, 2015. Write the reason why it is being EXCLUDED or INCLUDED

1. Merchandise received on January 7, 2016 was entered in the purchase journal on January 8, 2016. Invoice showed shipment was made FOB shipping point on December 30, 2015.

2. Merchandise costing P20,000 sold and paid by the customer for P28,000 on December 28, 2015, was set aside for shipment on January 3, 2016. Being on hand, it was included in the inventory

3 .Merchandise costing P12,750 was received on January 3, 2016 and purchase invoice recorded on January 5, 2016. Shipment was made on December 27, 2015 FOB destination

4. An item was sold and delivered to the customer on December 29, 2015. The goods were included in the inventory because the sale was with a repurchase agreement that requires the entity to buy back the inventory on January 15, 2016

5. A product was sold on installment basis on December 31, 2015 It was delivered to the customer on that date. The product was included in inventory because the company still holds legal title. The companys experience suggests that full payment on installment sale is reasonably assured.

.