On Feb. 18, 2020, a fire destroyed the merchandise inventory of Cristina Santiago S The following information was available from the entity's accounting office: P1,260,000 39,600 Cost of Goods Sold Transportation In Merchandise Inventory, 1/1/2020 Purchases Discounts 300,000 26,400 46,200 1,320,000 Purchases Returns and Allowances Purchases Required: Compute the value of the lost merchandise.

Q: On Feb. 18, 2020, a fire destroyed the merchandise inventory of Cristina Santiago S The following…

A: The following computations are done in the records of Cristina Santiago.

Q: I dont know.how to do part a and b. Thank you for your help

A: a) Prepare the journal entries for the given transaction:

Q: H. On Feb. 18, 2020, a fire destroyed the merchandise inventory of Cristina Santiago Shirts. The…

A: Since you have asked multiple questions, we will solve the first question for you. If you  want any…

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Q: On Feb. 18, 2019, a fire destroyed the merchandise inventory of Cristina Santiago Shirts The…

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A: Cost of Goods sold = Net sales - Gross profir = $550,000 - $550,000*25% = $412,500

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Q: 2021   2020   Net sales   $630,000   $390,000   Cost of goods purchased   383,400   269,600…

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A:

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Q: estimated cost of merchandise inventory destroyed by fire

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A:

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Q: On Feb. 18, 2019, a fire destroyed the merchandise inventory of Cristina Santiago Shirts. The…

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Q: H. On Feb. 18, 2020, a fire destroyed the merchandise inventory of Cristina Santiago Shirts. The…

A: The question is based on the concept of Cost Accounting.

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Q: On Feb. 18, 2020, a fire destroyed the merchandise inventory of Cristina Santiago The following…

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Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.