Gross profit method - GPR based on sales - - On Nov. 29, 20x1, a meteorite struck the warehouse of Unlucky Co. and destroyed the inventories contained therein. The following information was determined: Beginning inventory Accounts payable, Jan. 1 Accounts payable, Nov. 29 Payments to suppliers Purchase returns 80,000 30,000 60,000 480,000 3,000 Purchase discounts 4,000 Freight-in Sales from Jan. to Nov. 5,000 585,000 Sales returns 15,000 117,000 Sales discounts Gross profit rate based on sales 25% Goods in transit, purchased FOB shipping point, from a vendor on Nov. 29, 20x1 were P28,000, while goods held by consignees were 32,000. The goods salvaged from the fire can be sold at a scrap alue of P2,500. How much is the inventory loss?
Gross profit method - GPR based on sales - - On Nov. 29, 20x1, a meteorite struck the warehouse of Unlucky Co. and destroyed the inventories contained therein. The following information was determined: Beginning inventory Accounts payable, Jan. 1 Accounts payable, Nov. 29 Payments to suppliers Purchase returns 80,000 30,000 60,000 480,000 3,000 Purchase discounts 4,000 Freight-in Sales from Jan. to Nov. 5,000 585,000 Sales returns 15,000 117,000 Sales discounts Gross profit rate based on sales 25% Goods in transit, purchased FOB shipping point, from a vendor on Nov. 29, 20x1 were P28,000, while goods held by consignees were 32,000. The goods salvaged from the fire can be sold at a scrap alue of P2,500. How much is the inventory loss?
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter20: Accounting For Inventory
Section20.3: Estimating Inventory
Problem 1OYO
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![Gross profit method - GPR based on sales
- On Nov. 29, 20x1, a meteorite struck the warehouse of
Unlucky Co. and destroyed the inventories contained therein.
The following information was determined:
Beginning inventory
Accounts payable, Jan. 1
Accounts payable, Nov. 29
Payments to suppliers
Purchase returns
80,000
30,000
60,000
480,000
3,000
Purchase discounts
4,000
Freight-in
Sales from Jan. to Nov.
5,000
585,000
Sales returns
15,000
Sales discounts
117,000
Gross profit rate based on sales
25%
Goods in transit, purchased FOB shipping point, from a vendor on
Nov. 29, 20x1 were P28,000, while goods held by consignees were
P32,000. The goods salvaged from the fire can be sold at a scrap
value of P2,500. How much is the inventory loss?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0a121a2a-cb1e-4f51-bc36-934614100c96%2Fbcff527b-0bb8-483f-b66f-86670f6bdd7a%2Fzty4inu_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Gross profit method - GPR based on sales
- On Nov. 29, 20x1, a meteorite struck the warehouse of
Unlucky Co. and destroyed the inventories contained therein.
The following information was determined:
Beginning inventory
Accounts payable, Jan. 1
Accounts payable, Nov. 29
Payments to suppliers
Purchase returns
80,000
30,000
60,000
480,000
3,000
Purchase discounts
4,000
Freight-in
Sales from Jan. to Nov.
5,000
585,000
Sales returns
15,000
Sales discounts
117,000
Gross profit rate based on sales
25%
Goods in transit, purchased FOB shipping point, from a vendor on
Nov. 29, 20x1 were P28,000, while goods held by consignees were
P32,000. The goods salvaged from the fire can be sold at a scrap
value of P2,500. How much is the inventory loss?
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