Transcribed Image Text: 1. The balance in James Company’s inventory account on December 31, 2014 was P1,225,000 before the following information was considered: Goods shipped

Transcribed Image Text: 1. The balance in James Company’s inventory
account on December 31, 2014 was P1,225,000
before the following information was
considered:
Goods shipped FOB destination, on
December 20, 2014 from a vendor to were lost
in transit. The invoice cost of P45,000 was not
recorded by James. On December 28, 2014,
James notified the vendor of the lost shipment.
Goods were in transit from a vendor to James
on December 31, 2014. The invoice cost was
P60,000 and the goods were shipped FOB
shipping point on December 28, 2014. James
received the goods on January 1, 2015.
What amount of inventory should be reported in
the December 31, 2014 statement of financial
position?
A. 1, 225, 000
B. 1, 330, 000
C. 1, 285, 000
D. 1, 270, 000

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