ABC Company's accounting records indicated the following information for 2020: Inventory, January 1 500,000 Purchases 2,500,000 Sales 3,200,000 A physical inventory taken on December 31, 2020 resulted in an ending inventory of P500,000. Gross profit on sales has remained constant at 25 percent in recent years. The company suspects some inventory may have been taken by a new employee. A. P500,000 B. P50,000 C. P100,000 D. PO
ABC Company's accounting records indicated the following information for 2020: Inventory, January 1 500,000 Purchases 2,500,000 Sales 3,200,000 A physical inventory taken on December 31, 2020 resulted in an ending inventory of P500,000. Gross profit on sales has remained constant at 25 percent in recent years. The company suspects some inventory may have been taken by a new employee. A. P500,000 B. P50,000 C. P100,000 D. PO
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 39BE
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ABC Company's accounting records indicated the following information for 2020:
Inventory, January 1
500,000
Purchases
2,500,000
Sales
3,200,000
A physical inventory taken on December 31, 2020 resulted in an ending inventory of P500,000. Gross profit on sales has remained constant at 25 percent in recent years. The company suspects some inventory may have been taken by a new employee.
A. P500,000
B. P50,000
C. P100,000
D. PO
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