. Nectarine Company lost most of its inventory in a fire in December, 2021, just before the year- end physical inventory was taken. The company's books disclosed the following: Invy, 1/1/21 - 1,700,000 - 3,900,000 300,000 6,500,000 240,000 Purchases Purchase return Sales %3 Sales returns Merchandise costing P126,000 remain undamaged after the fire. Damaged merchandise with an original selling price of P150,000 had a net realizable value of P53,000. A partial comparative profit and loss for 2020 and 2019 also disclosed the following: 2020: Sales - 5,000,000; CGS - 3,025,000 2019: Sales - 5,600,000; CGS - 3,332,000 Assuming that Nectarine Company had no insurance coverage, what is the amount of loss as a result of the fire? *
. Nectarine Company lost most of its inventory in a fire in December, 2021, just before the year- end physical inventory was taken. The company's books disclosed the following: Invy, 1/1/21 - 1,700,000 - 3,900,000 300,000 6,500,000 240,000 Purchases Purchase return Sales %3 Sales returns Merchandise costing P126,000 remain undamaged after the fire. Damaged merchandise with an original selling price of P150,000 had a net realizable value of P53,000. A partial comparative profit and loss for 2020 and 2019 also disclosed the following: 2020: Sales - 5,000,000; CGS - 3,025,000 2019: Sales - 5,600,000; CGS - 3,332,000 Assuming that Nectarine Company had no insurance coverage, what is the amount of loss as a result of the fire? *
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![. Nectarine Company lost most of its inventory in a fire in December, 2021, just before the year-
end physical inventory was taken. The company's books disclosed the following:
Invy, 1/1/21 - 1,700,000
- 3,900,000
300,000
6,500,000
240,000
Purchases
Purchase return
Sales
%3
Sales returns
Merchandise costing P126,000 remain undamaged after the fire. Damaged merchandise with
an original selling price of P150,000 had a net realizable value of P53,000. A partial
comparative profit and loss for 2020 and 2019 also disclosed the following:
2020: Sales - 5,000,000; CGS - 3,025,000
2019: Sales - 5,600,000; CGS - 3,332,000
Assuming that Nectarine Company had no insurance coverage, what is the amount of loss as a
result of the fire? *](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F41f36cf8-5370-4676-9660-e95d5cc31f5c%2Fb63e1006-7fde-427a-bbc9-ffd2e4d89e8c%2Fex5939_processed.png&w=3840&q=75)
Transcribed Image Text:. Nectarine Company lost most of its inventory in a fire in December, 2021, just before the year-
end physical inventory was taken. The company's books disclosed the following:
Invy, 1/1/21 - 1,700,000
- 3,900,000
300,000
6,500,000
240,000
Purchases
Purchase return
Sales
%3
Sales returns
Merchandise costing P126,000 remain undamaged after the fire. Damaged merchandise with
an original selling price of P150,000 had a net realizable value of P53,000. A partial
comparative profit and loss for 2020 and 2019 also disclosed the following:
2020: Sales - 5,000,000; CGS - 3,025,000
2019: Sales - 5,600,000; CGS - 3,332,000
Assuming that Nectarine Company had no insurance coverage, what is the amount of loss as a
result of the fire? *
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