Intermediate Accounting Inventories - 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:

\f1. Finished goods in storeroom, at cost, including overhead of P450,000 or 30% P1,500,000 2. Materials 1,200,000 3. Materials in transit, FOB destination 40,000 4. Defective materials returned to suppliers 80,000 5. Shipping supplies 10,000 6. Gasoline and old for testing finished goods 120,000 7. Machine lubricants 50,000 8. Finished goods in transit, including freight charges of P30,000, FOB shipping point 300,000 9. Finished goods held by salesmen, at selling price, cost, P130,000 180,000 10. Goods in process, at cost of materials and direct labor 700,000