Regina Y.

asked • 04/19/21

What pretax total amount should be reported as prior period errors in 2018?

Ryujin reported the following events during 2018:


It was decided to write off P800,000 of obsolete inventory

A counting error relating to the inventory on December 31, 2017 was discovered.

This required a reduction in the carrying amount of inventory at that date of P300,000

Sales of P600,000 had been omitted from the financial statements for the year ended December 31, 2017. The provision for uncollectible accounts receivable on December 31, 2017 was P300,000.

During 2018, P500,000 was written off the December 31,2017 accounts receivable.


What pretax total amount should be reported as prior period errors in 2018?

a. P1,700,000

b. P1,100,000

c. P1,900,000

d. P900,000

No expert answers yet

Answers can only be accepted by verified, expert tutors.


Still looking for help? Get the right answer, fast.

Ask a question for free

Get a free answer to a quick problem.
Most questions answered within 4 hours.

OR

Find an Online Tutor Now

Choose an expert and meet online. No packages or subscriptions, pay only for the time you need.