[P1-AP] INVENTORIES - CHAPTER 3 INENTORIES MEASUREMENT OF...

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CHAPTER 3 INENTORIES MEASUREMENT OF INVENTORIES Compare Cost vs. Net Realizable Value (less cost to sell) o WHICH EVER IS LOWER CUT-OFF OF INVENTORIES 1. Is it a valid sale or purchase? (FOB Destination vs FOB SP) 2. Was it recorded as a sale or purchase? 3. Was it counted in the year-end inventory? (Should it be counted?) SALES Sales/ AR Invty NI Unadjusted Balance xx xx xx In transit- FOB Destination, recorded as sale, not counted (xx) xx - In transit- FOB Destination, recorded as sale, counted (xx) - (xx) In transit- FOB Destination, not recorded as sale, not counted - xx xx In transit- FOB Destination, not recorded as sale, counted - - - In transit- FOB Shipping Pt., recorded as sale, not counted - - - In transit- FOB Shipping Pt., recorded as sale, counted - xx xx In transit- FOB Shipping Pt., not recorded as sale, not counted xx - xx In transit- FOB Shipping Pt., not recorded as sale, counted xx 1 xx 2 xx 1 +xx 2 Adjusted Balance xx xx xx PURCHASE Purch/ AP Invty NI Unadjusted Balance xx xx xx In transit- FOB Destination, recorded as
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