On December 31, 2022, the home office of ABC Company recorded a shipment of merchandise to...
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On December 31, 2022, the home office of ABC Company recorded a shipment of merchandise to its Manila branch as follows: Manila Branch Shipments to Manila Branch Unrealized profit in Manila Branch Inventory P30,000 (25,000) (4,000) Cash (for freight charges) (1,000) The Manila branch sells 40% of the merchandise to outside entities during the rest of December 31, 2022. The book of the home office and ABC branches are closed on December 31 of each year. On January 5, 2023, the Manila branch transfers half of the original shipments to the Makati branch, and the Manila branch pays P500 freight on the shipment. Shipments directly to the Makati branch for the same shipment size is at P1,500. 1. How much is the loss on excess freight to be recognized in 2023? On December 31, 2022, the home office of ABC Company recorded a shipment of merchandise to its Manila branch as follows: Manila Branch Shipments to Manila Branch Unrealized profit in Manila Branch Inventory P30,000 (25,000) (4,000) Cash (for freight charges) (1,000) The Manila branch sells 40% of the merchandise to outside entities during the rest of December 31, 2022. The book of the home office and ABC branches are closed on December 31 of each year. On January 5, 2023, the Manila branch transfers half of the original shipments to the Makati branch, and the Manila branch pays P500 freight on the shipment. Shipments directly to the Makati branch for the same shipment size is at P1,500. 1. How much is the loss on excess freight to be recognized in 2023?
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To calculate the loss on excess freight to be recognized in 2023 we need to compare the freight char... View the full answer
Related Book For
Intermediate Accounting IFRS
ISBN: 9781119607519
4th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
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