Blazing Red Company began operations in 2016. On August 28 inventory and most of the accounting records. The following 2019, a fire broke out in the company's warehouse destroying inventory and most of the accounting records. information was assembled from the microfilmed records. All s and purchases are on account. Jan. 1, 2019 Aug. 28, 2019 P575,400 522,360 352,560 Inventory Accounts Receivable P515,560 491,400 Accounts Payable Collections from customers, January 1 to August 28, 2019 Payments to suppliers January 1 to August 28, 2019 Goods out on consignment on August 28, 2019, at cost Goods in transit at August 28, 2019 purchased FOB shipping point 3,015,200 1,950,000 195,000 69,500 The company's average gross profit percentage for the past three years is 30%. REQUIRED: What is the inventory fire loss?

Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter14: Accounting For Uncollectible Accounts Receivable
Section14.2: Writing Off And Collecting Uncollectible Accounts Receivable
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On August 28,
Blazing Red Company began operations in 2016.
2019, a fire broke out in the company's warehouse destroying
inventory and most of the accounting records. The follo all
information was assembled from the microfilmed records.
and purchases are on account.
All sales
Jan. 1, 2019 Aug. 28, 2019
P575,400
522,360
352,560
Inventory
Accounts Receivable
Accounts Payable
Collections from customers,
January 1 to August 28, 2019
Payments to suppliers
January 1 to August 28, 2019
Goods out on consignment on
August 28, 2019, at cost
Goods in transit at August 28, 2019
purchased FOB shipping point
P515,560
491,400
3,015,200
1,950,000
195,000
69,500
The company's average gross profit percentage for the past three
years is 30%.
REQUIRED:
What is the inventory fire loss?
Transcribed Image Text:On August 28, Blazing Red Company began operations in 2016. 2019, a fire broke out in the company's warehouse destroying inventory and most of the accounting records. The follo all information was assembled from the microfilmed records. and purchases are on account. All sales Jan. 1, 2019 Aug. 28, 2019 P575,400 522,360 352,560 Inventory Accounts Receivable Accounts Payable Collections from customers, January 1 to August 28, 2019 Payments to suppliers January 1 to August 28, 2019 Goods out on consignment on August 28, 2019, at cost Goods in transit at August 28, 2019 purchased FOB shipping point P515,560 491,400 3,015,200 1,950,000 195,000 69,500 The company's average gross profit percentage for the past three years is 30%. REQUIRED: What is the inventory fire loss?
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