Problem 4 On July 21, 2021, there was a fire that destroyed PIRENA Company's warehouse and inventory records. The following information about sales and salvaged documents revealed the following: Inventory, Jan. 1 - P485,000 • Purchases - January to July 21 o Cost of purchases P1,560,300 o Freight-in -P39,700 o Purchase returns P80,000 o Purchase discounts P20,000 • Sales - January to July 21 o Sales - P2,000 o Sales discounts P500,000 o Sales discounts forfeited P20,000 • The gross profit is 20% for the last five years. The company also provided information: o Goods out on consignment, at cost - P30,000 o Goods purchased still in transit, FOB destination P25,000 o Cost of undamaged goods at selling price - P100,000
Problem 4 On July 21, 2021, there was a fire that destroyed PIRENA Company's warehouse and inventory records. The following information about sales and salvaged documents revealed the following: Inventory, Jan. 1 - P485,000 • Purchases - January to July 21 o Cost of purchases P1,560,300 o Freight-in -P39,700 o Purchase returns P80,000 o Purchase discounts P20,000 • Sales - January to July 21 o Sales - P2,000 o Sales discounts P500,000 o Sales discounts forfeited P20,000 • The gross profit is 20% for the last five years. The company also provided information: o Goods out on consignment, at cost - P30,000 o Goods purchased still in transit, FOB destination P25,000 o Cost of undamaged goods at selling price - P100,000
Corporate Financial Accounting
15th Edition
ISBN:9781337398169
Author:Carl Warren, Jeff Jones
Publisher:Carl Warren, Jeff Jones
Chapter5: Accounting For Retailing Businesses
Section: Chapter Questions
Problem 5.41EX: Appendix Cost of goods sold and related items The following data were extracted from the accounting...
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1. How much is the estimated inventory losses?
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