Flood damaged the merchandise inventory of SM Supermarket on July 25, 2020. You have discovered the following information from the records salvaged from the flood: Inventory, January 1, 2020 P1,960,000, Sales, January 1 - July 25, 2020 (including goods sold but not delivered to customers, P76,000) P19,530,000, Merchandise purchases including those still in transit, shipped FOB shipping point, P 138,000) P10,470,000, Mark-up on goods sold 40% of cost. The merchandise saved from the flood has an estimated value of P 163,000.
Flood damaged the merchandise inventory of SM Supermarket on July 25, 2020. You have discovered the following information from the records salvaged from the flood: Inventory, January 1, 2020 P1,960,000, Sales, January 1 - July 25, 2020 (including goods sold but not delivered to customers, P76,000) P19,530,000, Merchandise purchases including those still in transit, shipped FOB shipping point, P 138,000) P10,470,000, Mark-up on goods sold 40% of cost. The merchandise saved from the flood has an estimated value of P 163,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Flood damaged the merchandise inventory of SM Supermarket on July 25, 2020. You have discovered the following information from the records salvaged from the flood: Inventory, January 1, 2020 P1,960,000, Sales, January 1 - July 25, 2020 (including goods sold but not delivered to customers, P76,000) P19,530,000, Merchandise purchases including those still in transit, shipped FOB shipping point, P 138,000) P10,470,000, Mark-up on goods sold 40% of cost. The merchandise saved from the flood has an estimated value of P 163,000.
What is the estimated value of inventory damaged by the flood? Present solutions in good accounting form.
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