Gecelle Company reported during the current year beginning inventory P500,000, net purchasesP2,500,000 and net sales P3,200,000. A physical count at year-end resulted in an inventory of P575,000.The gross profit on sales had remained constant at 25%. The entity suspected that sme inventory mayhave been taken by a new employee.What is the estimated cost of missing inventory at year-end?

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter10: Inventory
Section: Chapter Questions
Problem 15EB: Tanke Company reported net income on the year-end financial statements of $850,200. However, errors...
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Gecelle Company reported during the current year beginning inventory P500,000, net purchasesP2,500,000 and net sales P3,200,000. A physical count at year-end resulted in an inventory of P575,000.The gross profit on sales had remained constant at 25%. The entity suspected that sme inventory mayhave been taken by a new employee.What is the estimated cost of missing inventory at year-end?

 

 

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