On May 21, 2014, a fire destroyed the entire merchandise inventory on hand of Natural Corporation. The following information is available: Sales, January 1 through May 2, 2014 Sales return (covering the same period) Sales allowance (covering the same period) Sales discounts (covering the same period) Inventory, January 1, 2014 Purchases, January 1 through May 2, 2014 (including P40,000 of goods in transit on May 2, 2014 shipped FOB shipping point) Purchase discounts Purchase returns and allowances Mark-up percentage on cost P380,000 20,000 10,000 25,000 80,000 400,000 40,000 30,000 20%
On May 21, 2014, a fire destroyed the entire merchandise inventory on hand of Natural Corporation. The following information is available: Sales, January 1 through May 2, 2014 Sales return (covering the same period) Sales allowance (covering the same period) Sales discounts (covering the same period) Inventory, January 1, 2014 Purchases, January 1 through May 2, 2014 (including P40,000 of goods in transit on May 2, 2014 shipped FOB shipping point) Purchase discounts Purchase returns and allowances Mark-up percentage on cost P380,000 20,000 10,000 25,000 80,000 400,000 40,000 30,000 20%
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 10RE: Jessie Stores uses the periodic system of calculating inventory. The following information is...
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AUDITING PROBLEM - AUDIT OF INVENTORIES
2. How much should be recognized as inventory loss?
Transcribed Image Text:On May 21, 2014, a fire destroyed the entire merchandise inventory on hand of Natural
Corporation. The following information is available:
Sales, January 1 through May 2, 2014
Sales return (covering the same period)
Sales allowance (covering the same period)
Sales discounts (covering the same period)
Inventory, January 1, 2014
Purchases, January 1 through May 2, 2014 (including P40,000 of
goods in transit on May 2, 2014 shipped FOB shipping point)
Purchase discounts
Purchase returns and allowances
Mark-up percentage on cost
P380,000
20,000
10,000
25,000
80,000
400,000
40,000
30,000
20%
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