Problem 13-10 (AICPA Adapted) On September 30, 2021, a fire destroyed most of the merchandise inventory of Paragon Company. All goods were completely destroyed except for partially damaged goods that normally sell for P100,000 and that had an estimated net realizable value of P25,000 and undamaged goods that normally sell for P60,000. Inventory-January 1, 2021 Net purchases, January 1 through September 30, 2021 Net sales, January 1 through September 30, 2021 660,000 4,240,000 5,600,000 2020 2019 2018 Net sales Cost of goods sold 5,000,000 3,840,000 3,000,000 2,200,000 1,000,000 710,000 What amount of fire loss shoul be recognized on September 30, 2021? a. 700,000 b. 615,000 c. 630,000 d. 580,000

Problem 13-10 (AICPA Adapted) On September 30, 2021, a fire destroyed most of the merchandise inventory of Paragon Company. All goods were completely destroyed except for partially damaged goods that normally sell for P100,000 and that had an estimated net realizable value of P25,000 and undamaged goods that normally sell for P60,000. Inventory-January 1, 2021 Net purchases, January 1 through September 30, 2021 Net sales, January 1 through September 30, 2021 660,000 4,240,000 5,600,000 2020 2019 2018 Net sales Cost of goods sold 5,000,000 3,840,000 3,000,000 2,200,000 1,000,000 710,000 What amount of fire loss shoul be recognized on September 30, 2021? a. 700,000 b. 615,000 c. 630,000 d. 580,000

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

Chapter8: Inventories: Special Valuation Issues

Section: Chapter Questions

Problem 12P

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