Sharp Company received P 80.000 of inventory items on the last day of its fiscal year, May
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Question:
Sharp Company received P 80.000 of inventory items on the last day of its fiscal year, May 31, 2022. The company employees a periodic inventory system. During your audit, you discovered the following:
1. Items Alpha were included in inventory at May 31, 2022, but the purchase was not recorded until June 3, 2022, P 100,000.
2. Items Bravo were excluded from the May 31, 2022 inventory, but the purchase was recorded on May 31, 2022, P60,000.
3. Items Charlie were excluded from the May 31, 2022 inventory, the purchase was not recorded until June 3, 2022, P 50,000.
What is the net effect on net income of the errors?
Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
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