Required: How much is the inventory loss due to fire? PROBLEM 18: San Jose Corporation was organized on January 1, 2020. On December 31, 2021,the corporation lost most of its inventory in a warehouse fire just before the year end count ofinventory was to take place. Data records disclosed the following:20202021Beginning inventoryPurchasesP 1,020,0003,460,0004,300,000Purchase returns and allowances230,6003,940,000323,0004,180,000SalesSales returns and allowances80,000100,000On January 1, 2021, the corporation's pricing policy was changed so that the gross profit ratewould be 3% points higher than the one earned in 2020. Salvaged undamaged merchandisewas marked to sell at P120,000 while damaged merchandise marked to sell at P80,000 had anestimated realizable value of P18,000.23. How much is the inventory loss due to fire?

The details for two years are given as fire occured and the stock was damaged. Required How much is…

PROBLEM 18: San Jose Corporation was organized on January 1, 2 the corporation lost most of its inventory in a warehouse fire just b inventory was to take place. Data records disclosed the following: 2020 Beginning inventory Purchases P 4,300,000 230,600 3,940,000 Purchase returns and allowances Sales Sales returns and allowances 80,000 On January 1, 2021, the corporation's pricing policy was changed

PROBLEM 18: San Jose Corporation was organized on January 1, 2 the corporation lost most of its inventory in a warehouse fire just b inventory was to take place. Data records disclosed the following: 2020 Beginning inventory Purchases P 4,300,000 230,600 3,940,000 Purchase returns and allowances Sales Sales returns and allowances 80,000 On January 1, 2021, the corporation's pricing policy was changed

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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