On September 30, 2020, a fire destroyed̟most of theAll goods were completely destroyed except for partiallydamaged goods that normally sell for P100,000 and that hadan estimated net realizable value of P25,000 and undamagedWhat is the amount of fire loss to be recognized on SeptemberProblem 13-8 (AICPA Adapted)merchandise inventory of Paragon Company.an estimated net realizable value of P26,000 and undamacdgoods that normally sell for P60,000.Inventory -January 1, 2020Net purchases, January 1 through September 30, 2020Net sales, January 1 through September 30, 2020660,0004,240,0005,600,000201920182017Net salesCost of goods sold5,000,0003,840,0003,000,0002,200,0001,000,000710,000What is the amount of fire loss to be recognized on20, 2020?a. 700,000b. 615,000с. 630,000d. 580,000

Net sales 5,600,000 Profit 700,000 % (on cost) 14.3% %…

Problem 13-8 (AICPA Adapted) On September 30, 2020, a fire destroyed̟most 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, 2020 Net purchases, January 1 through September 30, 2020 Net sales, January 1 through September 30, 2020 660,000 4,240,000 5,600,000 2019 2018 2017 Net sales Cost of goods sold 5,000,000 3,840,000 3,000,000 2,200,000 1,000,000 710,000 What is the amount of fire loss to be recognized on September 20, 2020? a. 700,000 b. 615,000 с. 630,000 d. 580,000

Problem 13-8 (AICPA Adapted) On September 30, 2020, a fire destroyed̟most 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, 2020 Net purchases, January 1 through September 30, 2020 Net sales, January 1 through September 30, 2020 660,000 4,240,000 5,600,000 2019 2018 2017 Net sales Cost of goods sold 5,000,000 3,840,000 3,000,000 2,200,000 1,000,000 710,000 What is the amount of fire loss to be recognized on September 20, 2020? a. 700,000 b. 615,000 с. 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 7E

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