On August 31, a flood at Lordgin Company's only warehouse caused severe damage to its entire inventory. Based on recent history, Lordgin has a gross profit of 25 percent of net sales. The following information is available from Lordgin's records for the eight months ended August 31: Inventory, January 1 P520,000; Net Purchases 4,060,000; Net Sales 5,200,000. A physical inventory disclosed usable damaged goods which Lordgin estimates can be sold for P70,000. Using the gross profit method, the estimated cost of goods sold for the eight months ended August 31 should be     choices: P4,200,000. P3,830,000 P3,900,000 P680,000

Q: On June 19, 20X0, a fire destroyed a fraction of the uninsured merchandise inventory of the ABC…

A: Memorandum Trading account is an Account which is prepared at a certain period of time to evaluate…

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A: Given,  Gp ratio = 40% = 100 * Gross profit / Net sales Purchase = 420000 Net sales = 620000…

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A: Cost of inventory destroyed can be found out by applying the gross profit ratio on sale and finding…

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A: Cost of goods available for sale =      Beginning inventory + net purchases

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A: Amount of Fire Loss = Ending Inventory - Undamaged Goods Ending Inventory = Beginning Inventory +…

Q: A fire in July, just before the year-end physical inventory, destroyed the majority of GH…

A: Gross profit is the sales revenue which is over and above cost of goods sold. Cost of goods sold…

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A: Gross Profit Method:   Under this method, the beginning inventory is added to the net purchases…

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A: Inventory destroyed = Beginning inventory + Net purchases - Cost of goods sold Cost of goods sold =…

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A: The merchandise loss can be incurred due to fire or theft, etc. This loss can be estimated with the…

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A: The inventory valuation method used to evaluate the closing inventory and cost of goods sold. In…

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A: Gross Profit Method: Under this method, the beginning inventory is added to the net purchases…

Q: On September 22, 2016, a flood destroyed the entire merchandise inventory on hand in a warehouse…

A: Gross profit method:

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A: When sometimes inventory is being destroyed by fire or any other natural calamity, then inventory…

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Q: Inventory

A: Trading A/c…

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Q: On June 19, 20X0, a fire destroyed the entire uninsured merchandise inventory of the ABC…

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Q: On 1 September 20x6, a business had inventory of $380,000. During the month, sales totalled $650,000…

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A: Cost of goods sold:- It refers to the direct cost of producing the goods sold by a company. This…

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A: Gross profit = sales * gross profit percentage

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A: Cost of goods sold = Sales Revenue - Gross Profit

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A: In this case to compute the loss inventory due to fire by using the gross profit method. To…

Property Insurance

Property insurance protects property from unforeseeable loss or damage and covers property owners' liability. Property insurance provides financial compensation to the property owner or renter in the event of damage or theft, as well as to someone other than the owner or renter if that person is injured on the property. Property insurance covers all risks of damage caused by theft, fire, flood, cyclones, lighting, and natural calamities, among other things. The primary goal of property insurance is to require the property owner to cover the loss. A monthly premium is paid to the insurance company, and in exchange, the insurance company pays for damage based on the agreement stated in the policy. Property insurance protects assets such as a vehicle, auto, car, rental home, house, and valuable property.