Harry Company's reoords indicate the following information: Merchandise inventory, January 1, 200X7 Purchases, January 1 through December 31, 20X7 Sales, January 1 through December 31, 20X7 P 550,000 2,250,000 3,000,000 On December 31, 20X7, a physical inventory determined that ending inventory of P600,000 was in the warehouse. Harry's gross profit on sales has remained constant at 30%. Harry suspects some of the inventory may have been taken by some new employees. At December 31, 20X7, what is the estimated cost of missing inventory? O P100,000 O P200,000 P300,000 O P700,000
Harry Company's reoords indicate the following information: Merchandise inventory, January 1, 200X7 Purchases, January 1 through December 31, 20X7 Sales, January 1 through December 31, 20X7 P 550,000 2,250,000 3,000,000 On December 31, 20X7, a physical inventory determined that ending inventory of P600,000 was in the warehouse. Harry's gross profit on sales has remained constant at 30%. Harry suspects some of the inventory may have been taken by some new employees. At December 31, 20X7, what is the estimated cost of missing inventory? O P100,000 O P200,000 P300,000 O P700,000
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
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 3RE: Reid Company uses the periodic inventory system. On January 1, it had an inventory balance of...
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At December 31, 20X7, what is the estimated cost of missing inventory?
Transcribed Image Text:Harry Company's records indicate the following information:
Merchandise inventory, January 1, 20X7
Purchases, January 1 through December 31, 20X7 2,250,000
Sales, January i through December 31, 20X7
P 550,000
3,000,000
On December 31, 20X7, a physical inventory determined that ending inventory of P600,000 was in the
warehouse.
Harry's gross profit on sales has remained constant at 30%.
Harry suspects some of the inventory may have been taken by some new employees.
At December 31, 20X7, what is the estimated cost of missing inventory?
O P100,000
O P200,000
O P300,000
O P700,000
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