An inventory taken the morning after a large theft discloses P60, 000 of goods on hand as of March 12.  The following additional data is available from the books: Inventory on hand, March 1 P84,000 Purchases received, March 1 – 11 P63,000 Sales (goods delivered to customers) P120,000 Estimate the inventory of goods on hand at the close of business on March 11 by the gross profit method and determine the amount of the theft loss.  Show appropriate titles for all amounts in your presentation. Past records indicate that sales are made at 25% above sales.

Q: YNA Inc. operates a jewelry store. On the morning of February 14, an inventory was conducted after…

A: In the given question theft occured on February 14, and in that date Inventory was P5500000. The…

Q: Butterfly Company began October with inventory of $192.000. The business made net purchases of…

A: Gross profit is the difference between sales revenue and cost of goods sold. The cost of goods sold…

Q: On February 26, a hurricane destroyed the entire inventory stored in a warehouse owned by the…

A: Given,  Gp ratio = 40% = 100 * Gross profit / Net sales Purchase = 420000 Net sales = 620000…

Q: Identify the errors in the following schedule of the cost of merchandise sold for the year ended May…

A: Identify the errors associated in the given schedule of the cost of merchandise sold for the year…

Q: You were hired to audit the financial statements of Candace Company. An interim procedure was…

A: In the given question, we are provided with the data of Candace Company. With the given information…

Q: On February 26, a hurricane destroyed the entire inventory stored in a warehouse owned by the…

A: Net purchases and beginning inventories are included in the cost of commodities that are offered for…

Q: You are requested by a client on September 28 to prepare an insurance claim for a theft loss that…

A: Calculation of Gross profit Net sales = 50% + COGS Let COGS = X  51000 = 0.5X  + X X = 51000/1.5 =…

Q: In its second year of operation, Painter Inc. noticed possible theft of its inventories. It gathered…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: What figure should appear in the company's financial statements at 31 October 20X3 for closingi…

A: Given transactions between Nov 1 and Nov 4 are: 1 Goods costing $38,400 were received from…

Q: Compute the amount of the loss as a result of the fire, assuming that the corporation had no…

A: The inventory that is sold or distributed and that has been purchased as finished goods or requires…

Q: You are called by Tim Duncan of Shamrock Co. on July 16 and asked to prepare a claim for insurance…

A: Particulars Amount Sales $119,400 Less: Sales Return  $3,600 Net Sales $115,800…

Q: On March 1, AYE Merchandising had an inventory of P560,000 in its retail store. Purchases made in…

A: The merchandise loss can be incurred due to fire or theft, etc. This loss can be estimated with the…

Q: entry would include a on December 31, 2019:

A: The appropriate option is shown below

Q: In its second year of operation, Painter Inc. noticed possible theft of its inventories. It gathered…

A: Answer: $308,380 EXPLANATION : YEAR 1 Particular Amount (P) Purchase 1,200,000 Add: Freight…

Q: Grouper Company lost most of its inventory in a fire in December just before the year-end physical…

A: Lets understand the basics. When inventory gets damaged due to fire then loss due to fire needs to…

Q: corporation's books disclosed the following. Beginning inventory $ 183,500 Sales revenue $683,600…

A: solution : net purchase     =358400 – 30000                              =328400 Net sales…

Q: corporation's books disclosed the following. Beginning inventory Purchases for the year Purchase…

A: The cost of goods sold includes the cost of goods that are sold during the period. The ending…

Q: A fire on 28th Feb destroyed some of a company’s inventory and its  inventory records. The following…

A: Inventory is the value of goods manufactured, purchased or traded by the company.

Q: hen Mary Potts arrived at her store on the morning of January 29, she found empty shelves and…

A: The gross profit is calculated as difference between sales and cost of goods sold. The net income is…

Q: Sheffield Inc.’s April 30 inventory was destroyed by the explosion of an underground oil tank.…

A: working note 1. Gross profit  margin  formula =Gross profit/Net sales * 100 Gross profit will be…

Q: On September 22, 2016, a flood destroyed the entire merchandise inventory on hand in a warehouse…

A: Gross profit method:

Q: On September 22, 2021, a flood destroyed the entire merchandise inventory on hand in a warehouse…

A: Destroyed ending inventory can be calculated by deducting the estimated cost of goods sold from the…

Q: NA Inc. operates a jewelry store. On the morning of February 14, an inventory was conducted after…

A: The difference between estimated ending inventory and actual inventory available at storage house is…

Q: None

A: Step 1: Introduction to Ending Inventory:The value of products that remained in stock and are…

Q: Blue Spruce Corporation's March 31 inventory was destroyed by fire. January 1 inventory was…

A: We assume that all the inventory of 31 March was destryed by the fire.

Q: The physical count of the inventory of Great Goods Company on December 31 was determined as a total…

A: The inventory at end shows the balance of inventory which belongs to the business, even if it is in…

Q: Based on the preceding information, determine:  Net purchases , Cost of goods sold  and  Estimated…

A: Inventory: Inventory is a current asset account of the company that records the goods held by the…

Q: On March 1, AYE Merchandising had an inventory of P560,000 in its retail store. Purchases made in…

A: Loss by Fire - Loss by fire or any other natural calamities is an extraordinary loss for the…

Q: .Your review of ABC Company's inventory and related records for the year revealed the following…

A: Gross profit ratio = Gross profit / Sales where, Gross profit = Sales - Cost of goods sold

Q: On Vincent Inc.'s 2nd year of operation, the owner noticed a possible theft of its inventories. The…

A: Loss from theft refers to the loss of inventory which is stolen from the warehouse in the…

Q: Prepare a properly-formatted Income Statement using the periodic method of inventory control using…

A: Introduction: Income statement: All revenues and expenses are shown in income statement. It tells…

Q: Sheridan Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on…

A: Cost of goods sold:Cost of goods sold (COGS) refers to the direct costs of producing the goods sold…

Q: Which of the following statements is correct with respect to how this transaction should be shown on…

A: Account payable is a balance sheet item that comes under the head current liability account. It…

Q: Compute the amount of the loss as a result of the fire,

A: Amount of loss = Ending inventory - Undamaged inventory - Net realizable value of damaged…

Q: Riverbed Inc.’s April 30 inventory was destroyed by the explosion of an underground oil tank.…

A: The ending inventory is the inventory that is left unsold in the business.

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.