In its second year of operation, Painter Inc. noticed possible theft of its inventories. It gathered the following information from its operations: 1" Year 2nd year P 1,200,000 P1,500,000 100,000 50,000 40,000 1,300,000 100,000 120,000 900,000 Purchases Freight-in 120,000 Purchase returns and allowance 60,000 Purchase discount 70,000 1800,000 Sales Sales returns and allowance 250,000 Sales discount 150,000 Cost of sales ??? If the physical ending inventory were valued at P325,000, how much is the estimated loss from inventory theft?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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In its second year of operation, Painter Inc. noticed possible theft
of its inventories. It gathered the following information from its
operations:
1" Year
2nd year
Purchases
P1,200,000 P1,500,000
Freight-in
100,000
120,000
Purchase returns and allowance
50,000
60,000
Purchase discount
40,000
70,000
Sales
1,300,000
1800,000
Sales returns and allowance
100,000
250,000
Sales discount
120,000
150,000
Cost of sales
900,000
???
If the physical ending inventory were valued at P325,000, how
much is the estimated loss from inventory theft?
Transcribed Image Text:In its second year of operation, Painter Inc. noticed possible theft of its inventories. It gathered the following information from its operations: 1" Year 2nd year Purchases P1,200,000 P1,500,000 Freight-in 100,000 120,000 Purchase returns and allowance 50,000 60,000 Purchase discount 40,000 70,000 Sales 1,300,000 1800,000 Sales returns and allowance 100,000 250,000 Sales discount 120,000 150,000 Cost of sales 900,000 ??? If the physical ending inventory were valued at P325,000, how much is the estimated loss from inventory theft?
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