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Question - Alca Company's inventory at June 30, 2006 was P750,000 based on the physical count of goods priced at cost and before any necessary year-end adjustment relating to the following:
Included in the physical count were goods billed to a customer FOB Shipping point on June 30, 2006. These goods costing P15, 000 were picked up by the carrier on July 9, 2006.
Goods shipped FOB Destination on June 28, 2006 from a vendor to Alca were received on July 4, 2006. The invoice cost was P25, 000.
What amount should Alca report as inventory in its June 30,2006 balance sheet?
a. P735,000
b. P740,000
c. P750,000
d. P765,000
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Listed below are several terms and phrases associated with cash and receivables. Pair each item from List A (by letter) with the item from List B that is most appropriately associated with it.
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