The purchases of Liver Inc. during the year are as follows: 1st quarter- P1,368,000 2nd quarter- P1,320,000 3rd quarter- P2,175,000 4th quarter- P840,000 The entity’s physical count revealed the following balances of cost and NRV, respectively: January 1- P20,000; P19,000 June 30- P40,000; P38,500 December 31- P35,000; P34,600 The gross profit ratio for the year is 35%. If the company uses the allowance method, how much is the loss on inventory write-down to be recognized in the 2nd quarter?

The purchases of Liver Inc. during the year are as follows: 1st quarter- P1,368,000 2nd quarter- P1,320,000 3rd quarter- P2,175,000 4th quarter- P840,000 The entity’s physical count revealed the following balances of cost and NRV, respectively: January 1- P20,000; P19,000 June 30- P40,000; P38,500 December 31- P35,000; P34,600 The gross profit ratio for the year is 35%. If the company uses the allowance method, how much is the loss on inventory write-down to be recognized in the 2nd quarter?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter12: Balanced Scorecard And Other Performance Measures

Section: Chapter Questions

Problem 6EA: During the current year, Sokowski Manufacturing earned income of $350,000 from total sales of...

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