Bartleby Graduate Inc. was organized on January 1, 2020. On December 31, 2021, the company lost most of its inventory in a warehouse fire just before the year-end count of Inventory was to take place. The company's records disclosed the following data: 2020 2021 Inventory, January 1 204,000 Purchases 890,000 745,040 Purchase returns and 46,120 64,600 allowances Sales 805,850 836,000 Sales returns and allowances 6,000 20,000 On January 1, 2021, Bartleby Graduate Inc.'s pricing policy was changed so that the gross profit rate would be three percentage points lower than the one earned in 2020. Salvaged undamaged merchandise was marked to sell at P24,000 while damaged merchandise market to sell at P16,000 had an estimated realizable value of P3,600.

Bartleby Graduate Inc. was organized on January 1, 2020. On December 31, 2021, the company lost most of its inventory in a warehouse fire just before the year-end count of Inventory was to take place. The company's records disclosed the following data: 2020 2021 Inventory, January 1 204,000 Purchases 890,000 745,040 Purchase returns and 46,120 64,600 allowances Sales 805,850 836,000 Sales returns and allowances 6,000 20,000 On January 1, 2021, Bartleby Graduate Inc.'s pricing policy was changed so that the gross profit rate would be three percentage points lower than the one earned in 2020. Salvaged undamaged merchandise was marked to sell at P24,000 while damaged merchandise market to sell at P16,000 had an estimated realizable value of P3,600.

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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