On September 14, 2020, a typhoon damaged a warehouse of TULIP Corporation. The entire company and many accounting records stored in the warehouse were completely destroyed. Although the inventory was not insured, a portion could be sold for scrap. Through the use of microfilmed records, the following data were gathered How much is the value of inventory loss? 750,000Inventory, January 1Purchases, January to September 14Cash sales, January to September 14Collection of accounts receivables, January 1- Sept.142,770,000450,0004,230,00050,000Accounts receivable written-offAccounts receivable, January 1Accounts receivable, September 14Net realizable value of damaged inventory350,000530,00020,000Gross profit percentage on sale32%

Particulars Amount($) Collection of accounts receivables 4,230,000 Add: Ending accounts…

Answered: On September 14, 2020, a typhoon…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 37E: Analyzing the Accounts Casey Company uses a perpetual inventory system and engaged in the following...

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On September 14, 2020, a typhoon damaged a warehouse of TULIP Corporation. The entire company and many accounting records stored in the warehouse were completely destroyed. Although the inventory was not insured, a portion could be sold for scrap. Through the use of microfilmed records, the following data were gathered

How much is the value of inventory loss?

750,000
Inventory, January 1
Purchases, January to September 14
Cash sales, January to September 14
Collection of accounts receivables, January 1- Sept.14
2,770,000
450,000
4,230,000
50,000
Accounts receivable written-off
Accounts receivable, January 1
Accounts receivable, September 14
Net realizable value of damaged inventory
350,000
530,000
20,000
Gross profit percentage on sale
32%

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