How much is the inventory loss due to fire
PROBLEM 18: San Jose Corporation was organized on January 1, 2020. On December 31, 2021, the corporation lost most of its inventory in a warehouse fire just before the year end count of inventory was to take place. Data records disclosed the following:
2020 2021
Beginning inventory P 0 P 1,020,000
Purchases 4,300,000 3,460,000
Purchase returns and allowances 230,600 323,000
Sales 3,940,00 4,180,000
Sales returns and allowances 80,000 100,000
On January 1, 2021, the corporation’s pricing policy was changed so that the gross profit rate would be 3% points higher than the one earned in 2020. Salvaged undamaged merchandise was marked to sell at P120,000 while damaged merchandise marked to sell at P80,000 had an estimated realizable value of P18,000.
23. How much is the inventory loss due to fire?
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