9. On October 31, 2020, ABC Company reported that a flood caused severe damage to the entire inventory. Based on recent history, the entity has a gross profit of 33 1/3% on cost. The following information is available from the records for ten months ended October 31, 2020: Inventory, January1 P520,000 4,120,000 60,000 5,700,000 500,000 Purchases Purchase returns and allowances Sales Sales returns and allowances The physical inventory count revealed goods that were safe from the flood with cost of P70,000. Using the gross profit method, what is the estimated amount of inventory damaged by the flood as of October 31, 2020?
9. On October 31, 2020, ABC Company reported that a flood caused severe damage to the entire inventory. Based on recent history, the entity has a gross profit of 33 1/3% on cost. The following information is available from the records for ten months ended October 31, 2020: Inventory, January1 P520,000 4,120,000 60,000 5,700,000 500,000 Purchases Purchase returns and allowances Sales Sales returns and allowances The physical inventory count revealed goods that were safe from the flood with cost of P70,000. Using the gross profit method, what is the estimated amount of inventory damaged by the flood as of October 31, 2020?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter22: Accounting For Changes And Errors.
Section: Chapter Questions
Problem 11RE: At the end of 2019, Manny Company recorded its ending inventory at 350,000 based on a physical...
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