Please answer number 9 9. On October 31, 2020, ABC Company reported that a flood caused severe damage to the entireinventory. Based on recent history, the entity has a gross profit of 33 1/3% on cost. The followinginformation is available from the records for ten months ended October 31, 2020:Inventory, January 1PurchasesP520,0004,120,00060,0005,700,000500,000Purchase returns and allowancesSalesSales returns and allowancesThe physical inventory count revealed goods that were safe from the flood with cost of P70,000.Using the gross profit method, what is the estimated amount of inventory damaged by the floodas of October 31, 2020?

Gross profit means the difference between the sale revenue and cost of production. Sale means the…

9. On October 31, 2020, ABC Company reported that a flood caused severe damage to the entire inventory. Based on recent history, the entity has a gross profit of 33 1/3% on cost. The following information is available from the records for ten months ended October 31, 2020: Inventory, January1 P520,000 4,120,000 60,000 5,700,000 500,000 Purchases Purchase returns and allowances Sales Sales returns and allowances The physical inventory count revealed goods that were safe from the flood with cost of P70,000. Using the gross profit method, what is the estimated amount of inventory damaged by the flood as of October 31, 2020?