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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › MOCK EXAMS 4 BPP KIT PG 351
Hello sir im having a problem in sec B but only a part i don’t understand.
This is the question.
The following is an extract from Diaz co trial balance as at 31dec 20X8 :
INVENTORY AT 31DEC debit $8.6m
TRADE RECEIVABLES debit: $6.2m
5%LOAN NOTES credit $9m
The inventory count was completed on 31 december 20X8 but two issues have been noted. First, product with a sales values of $0.6m had been incorrectly excluded from the count. Second, items costing $0.2m which had been included in the count was damaged and could only be sold for 50% of normal selling price. Diaz co makes a profit markup of 50%on both these items.
What is the correct amount of inventory to be recognised in diaz co financial statement as at 31dec 20X8?
Hi,
Again, what is it exactly about the answer that you do not understand? I’ll be happy to explain once I see where you are struggling with the question.
Thanks