20 use the pfrs for smes on 1 january 20x1 an entity acquired goods for sale in the ordinary cou

1. The initial cost of the goods is ₱100,000, including ₱5,000 refundable purchase taxes. So, th

Question

On 1 January 20X1, an entity acquired goods for sale in the ordinary course of business for ₱100,000, including ₱5,000 refundable purchase taxes. The supplier usually sells goods on 30 days' interest-free credit. However, as a special promotion, the purchase agreement for these goods provided for payment to be made in full on 31 December 20X1. In acquiring the goods, transport charges of ₱2,000 were incurred, which were due on 1 January 20X1. An appropriate discount rate is 10 percent per year. The entity shall measure the cost of inventories at: a. ₱102,000 b. ₱97,000 c. ₱88,364 d. ₱107,000

          On 1 January 20X1, an entity acquired goods for sale in the ordinary course of business for ₱100,000, including ₱5,000 refundable purchase taxes. The supplier usually sells goods on 30 days' interest-free credit. However, as a special promotion, the purchase agreement for these goods provided for payment to be made in full on 31 December 20X1. In acquiring the goods, transport charges of ₱2,000 were incurred, which were due on 1 January 20X1. An appropriate discount rate is 10 percent per year. The entity shall measure the cost of inventories at:

a. ₱102,000
b. ₱97,000
c. ₱88,364
d. ₱107,000

Added by Donald P.

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