BBM 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 Purchases - 3,900,000 Purchase return - 300,000 Sales - 6,500,000 Sales returns - 240,000 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 BBM Company had no insurance coverage, what is the amount of loss as a result of the fire?
BBM 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
Purchases - 3,900,000
Purchase return - 300,000
Sales - 6,500,000
Sales returns - 240,000
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
2020: Sales - 5,000,000; CGS - 3,025,000
2019: Sales - 5,600,000; CGS - 3,332,000
Assuming that BBM Company had no insurance coverage, what is the amount of loss as a result of the fire?
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