Information pertaining to the inventory of Javelin Company for the ended December 31, 2022 follows:
Beginning inventory 200,000*
Ending inventory 300,000**
Total purchases 830,000
Purchases returns 35,000
Freight-in 10,000
Purchase discounts 5,000
*Includes items A and B costing P20,000 and P30,000, respectively. The net realizable value of item A is P15,000 and item B is P27,000.
**Includes cost of items A and B still unsold at the end of the year. The net realizable value of A is P23,000 and item B is P29,000.
How much is the ending inventory that should be reported in the statement of financial position on December 31, 2022 using the allowance method?
