Intermediate Accounting Inventories - Please Show Complete Solution and Explain:

Question 26

Star Corporation records its purchases at net amounts. Star purchased merchandise on account on September 7 for P45,000 with terms of 3/10, n/30. Star returned P4,000 of the Sept. 7 transaction and received credit on account. The balance has not been paid as of Sept. 30.

On Sept. 30, how much should the account payable be adjusted?

Question 27

Light Company began a real estate development project comprising single-family homes on January 1, 2018. Light purchased an P85,000,000 tract of land. Light spent an additional cost of P15,000,000 prepping the property for sale. The following are the project's specific details:

\f