On January 1, a store had inventory of P 48,000. January purchases were P 46,000 and January sales were P 90,000. On February 1 a fire destroyed most of the inventory. The rate of gross profit was 25% of cost. Merchandise with a selling price of P 5,000 remained undamaged after the fire. Compute the amount of the fire loss, assuming the store had no insurance coverage

On January 1, a store had inventory of P 48,000. January purchases were P 46,000 and January sales were P 90,000. On February 1 a fire destroyed most of the inventory. The rate of gross profit was 25% of cost. Merchandise with a selling price of P 5,000 remained undamaged after the fire. Compute the amount of the fire loss, assuming the store had no insurance coverage

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter20: Accounting For Inventory

Section: Chapter Questions

Problem 1CP

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