How much is the inventory fire loss? A. P189,400B. P183,640C. P164,920D. P254,000 Life Goes On Inc. was organized on January 1, 2019. On December 31, 2020, thecompany lost most of its inventory in a warehouse fire just before the year-endcount of inventory was to take place. The company's records disclosed thefollowing data:20192020Inventory, January 1POP 204,000Purchases860,000692,000Purchase returns and allowancesSalesSales returns and allowances46,120788,00064,600836,00020,00016,000On January 1, 2020, Life Goes On's pricing policy was changed so that thegross profit rate would be three percent (3%) higher than the one earned in2019.Salvaged damaged merchandise with a selling price of P40,000 wassalvaged for P21,840.

Name: How much is the inventory fire loss? A. P189,400B. P183,640C. P164,920
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Description: How much is the inventory fire loss? A. P189,400B. P183,640C. P164,920D. P254,000 Life Goes On Inc. was organized on January 1, 2019. On December 31, 2020, thecompany lost most of its inventory in a warehouse fire just before the year-endcount of inv

Net sales in 2019 = sales - sales return = 788000-16000 = P772000 Cost of goods sold in 2019 =…

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Accounting

Life Goes On Inc. was organized on January 1, 2019. On December 31, 2020, the company lost most of its inventory in a warehouse fire just before the year-end count of inventory was to take place. The company's records disclosed the following data: 2019 2020 Inventory, January 1 Purchases Purchase returns and allowances PO P 204,000 692,000 64,600 860,000 46,120 Sales 788,000 836,000 Sales returns and allowances 16,000 20,000 On January 1, 2020, Life Goes On's pricing policy was changed so that the gross profit rate would be three percent (3%) higher than the one earned in 2019.Salvaged damaged merchandise with a selling price of P40,000 was salvaged for P21,840.

Life Goes On Inc. was organized on January 1, 2019. On December 31, 2020, the company lost most of its inventory in a warehouse fire just before the year-end count of inventory was to take place. The company's records disclosed the following data: 2019 2020 Inventory, January 1 Purchases Purchase returns and allowances PO P 204,000 692,000 64,600 860,000 46,120 Sales 788,000 836,000 Sales returns and allowances 16,000 20,000 On January 1, 2020, Life Goes On's pricing policy was changed so that the gross profit rate would be three percent (3%) higher than the one earned in 2019.Salvaged damaged merchandise with a selling price of P40,000 was salvaged for P21,840.

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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