3

You determine after your physical inventory count for Magic Shop that there is a total of P463,000 merchandise that are on hand on December 31, 2020. You discovered the following items that were not included in the inventory per count. a. Merchandise held on consignment, P20,000. b. Goods that were shipped FOB shipping point on December 31, 2020 costing P39,500. These goods were delivered to the customer on January 6, 2021. c. Goods costing P18,600 that were shipped FOB destination to a customer on December 29, 2020. The customer received these goods on January 2, 2021. d. Merchandise costing P76,150 shipped by a seller FOB destination on December 28, 2020 and received by Magic Shop on January 3, 2021. e. Goods costing P16,500 shipped by a vendor FOB seller on December 31, 2020 and received by Magic Shop on January 4, 2021. How much is the correct balance of the inventory that must be reported in Magic Shop's statement of financial position as of December 31, 2020? P545,800 P498,100 P496,300 P593,000