Having been engaged as external auditor of Duhat Company on February 28, 2019, you were unable to observe the taking of inventory on December 31, 2019, which was reported to amount to P360,000. The following data, however, were gathered by you: Inventory, December 31, 2018 - P320.00 Purchases during 2019 - P1,410,000 Cash sales during 2019 - P350.00 Shipment received on December 26, 2019, included physical inventory but, not recordeds as purchases - P10,000 Deposits made with suppliers, entered as purchases, goods were not received in 2019 - P20,000 Collections on accounts receivable, 2019 - P1,800,000 Accounts Receivable, January 1, 2019 - P250,000 Accounts Receivable, December 31, 2019 - P300,000 Gross Profit percentage on sales - 40% Determine how much is the estimated inventory shortage at December 31, 2019.
Having been engaged as external auditor of Duhat Company on February 28, 2019, you were unable to observe the taking of inventory on December 31, 2019, which was reported to amount to P360,000. The following data, however, were gathered by you: Inventory, December 31, 2018 - P320.00 Purchases during 2019 - P1,410,000 Cash sales during 2019 - P350.00 Shipment received on December 26, 2019, included physical inventory but, not recordeds as purchases - P10,000 Deposits made with suppliers, entered as purchases, goods were not received in 2019 - P20,000 Collections on accounts receivable, 2019 - P1,800,000 Accounts Receivable, January 1, 2019 - P250,000 Accounts Receivable, December 31, 2019 - P300,000 Gross Profit percentage on sales - 40% Determine how much is the estimated inventory shortage at December 31, 2019.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Having been engaged as external auditor of Duhat Company on February 28, 2019, you were unable to observe the taking of inventory on December 31, 2019, which was reported to amount to P360,000. The following data, however, were gathered by you:
Inventory, December 31, 2018 - P320.00
Purchases during 2019 - P1,410,000
Cash sales during 2019 - P350.00
Shipment received on December 26, 2019, included physical inventory but, not recordeds as purchases - P10,000
Deposits made with suppliers, entered as purchases, goods were not received in 2019 - P20,000
Collections on
Accounts Receivable, January 1, 2019 - P250,000
Accounts Receivable, December 31, 2019 - P300,000
Gross Profit percentage on sales - 40%
Determine how much is the estimated inventory shortage at December 31, 2019.
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