Goods held by Duke on consignment ..... 4,500 Goods out on approval (sales price P6,000, cost P4,000) ....................................... 6,000 Based on this information, the inventory account at December 31, 2014, should be reduced by what amount? 6. Posh Company is a wholesale distributor of automotive replacement parts. Initial amounts taken from accounting records on December31, 2011 are as follows: inventory on December31 based on physical count 1,250,000 Accounts payable 1,000,000 Sales 9,000,000 (a) Parts held on consignmentfrom another entity to Posh, the consignee, amounting to P165,000, were included in the physical count on December 31, 2011, and in accounts payable on December 31, 2011. (b) P20,000 of parts which were purchased and paid for in December2011, were sold in the last week of 2011 and appropriately recorded as sales of P28,000. The parts were included in the physical count on December 31, 2011 because the parts were on the loading dock waiting to be picked up by the customer. (c) Parts in transit on December 31, 2011 to customers, shipped FOB shipping point on December 31,2011, amounted to P34,000. The customers received the parts on January 6, 2012. Sales of P40,000 to the customers for the parts were recorded by Delicate on January 2, 2012. (d) Retailers were holding P210,000 at cost and P250,000 at retail, of goods on consignmentfrom Posh, at their stores on December31, 2011 (e) Goods were in transit from a vendor to Posh on December31, 2011. The cost of goods was P25,000. The goods were shipped FOB shipping point on December 29,2011. 7. The balance in Master Company's accounts payable account at December 31, 2014, was P1,100,000 before considering the following information: - Goods shipped FOB shipping point on December20, 2014, from a vendorto Master were lost in transit. The invoice cost of P20,000 was not recorded by Master. On January 6, 2015, Master filed a P20,000 claim against the common carrier. - On December 27, 2014, a vendor authorized Masterto return, for full credit, goods shipped and billed at P35,000 on December 2, 2014. The returned goods were shipped by Master on December 27, 2014. A P35,000 credit memo was received and recorded by Master on January 6,2015. What amount should Master report as accounts payable in its December31, 2014, balance sheet? 8. Ruffa Company reviewed its yeareend inventory and found the following items: . A package containing a product costing P89,760 was standing in the shipping area when the physical inventory was COdUCtEd. This was not included in the inventory because it was marked "Hold for Shipping Instructions'. The purchase order was dated December 19, 2014 but the package was shipped and the customerwas billed January 2, 2015. . A special machine, fabricated to order for a special customer, was finished and in the shipping room on December 30,2014. The customer was billed on that date and the machine was excluded in the inventory. The machine costing P253,000 was shippedJanuary 4, 2015. . Merchandise costing P25,850 was received on January 3, 2015 and the related purchase invoice was recorded January 5,2015. The invoice showed the shipment was made on December 29, 2014, FOB destination. . Goods costing P 165,000 were sold and delivered on December20, 2014. The sale was accompanied by a repurchase agreement that Ruffa will "buyback'r the inventory on February 2010. How much is the inventory adjustment on December 31, 2014? 9. Barlow Company's Accounts Payable balance at December31, 2014, was P1,800,000 before considering the following transactions: - Goods were in transit from a vendor to Barlow on December 31, 2014. The invoice price was P100,000, and the goods were shipped FOB shipping point on December 29, 2014. The goods were received on ianuarv 4. 2015