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    Charvie Kyle Ramirez
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    ABC Co.'s records show goods sold to XYZ Inc. worth P750,000 where title remains with ABC until paid in full, goods sold to Alpha Co. for P680,000 that ABC agreed to repurchase at a price to cover inventory costs, and goods received from Beta Co. worth P580,000 that ABC agreed to replace soon. The total value of inventory included in ABC's records is P750,000 + P680,000 + P580,000 = P2,010,000.

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    ABC Co.'s records show goods sold to XYZ Inc. worth P750,000 where title remains with ABC until paid in full, goods sold to Alpha Co. for P680,000 that ABC agreed to repurchase at a price to cover inventory costs, and goods received from Beta Co. worth P580,000 that ABC agreed to replace soon. The total value of inventory included in ABC's records is P750,000 + P680,000 + P580,000 = P2,010,000.

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    © All Rights Reserved
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    5 views1 page

    Illustration III

    Uploaded by

    Charvie Kyle Ramirez
    ABC Co.'s records show goods sold to XYZ Inc. worth P750,000 where title remains with ABC until paid in full, goods sold to Alpha Co. for P680,000 that ABC agreed to repurchase at a price to cover inventory costs, and goods received from Beta Co. worth P580,000 that ABC agreed to replace soon. The total value of inventory included in ABC's records is P750,000 + P680,000 + P580,000 = P2,010,000.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    ILLUSTRATION III (Recognition of inventory)

    The records of ABC Co. show the following:


    a. Goods sold on an installment basis to XYZ Inc. title to the goods is retained by ABC. Co. until full payment is
    made. XYZ Inc. took possession of the goods; P750,000
    b. Goods sold to Alpha Co. for which ABC Co. has signed an agreement to repurchase the goods sold at a set price
    that covers all the costs related to the inventory; P680,000
    c. Goods sold where large returns are predictable P270,000
    d. Goods received from Beta Co. for which an agreement was signed requiring ABC Co. to replace such good in the
    near future. P580,000

    How much is included as part of ABC inventory?

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