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 P1,200,000 P1,500,000 100,000 50,000 40,000 1,300,000 100,000 Purchases Freight-in 120,000 Purchase returns and allowance 60,000 Purchase discount 70,000 Sales 1800,000 Sales returns and allowance 250,000 Sales discount Cost of sales If the physical ending inventory were valued at P325,000, how much is the estimated loss from inventory theft? 120,000 150,000 900,000 ???

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 P1,200,000 P1,500,000 100,000 50,000 40,000 1,300,000 100,000 Purchases Freight-in 120,000 Purchase returns and allowance 60,000 Purchase discount 70,000 Sales 1800,000 Sales returns and allowance 250,000 Sales discount Cost of sales If the physical ending inventory were valued at P325,000, how much is the estimated loss from inventory theft? 120,000 150,000 900,000 ???

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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10)During the year, Bubba's Sport Shop's merchandise inventory decreased by $50,000. If the company's cost of goods sold for the year was $1,000,000, purchases would have been Group of answer choices a)Unable to determine. b)$950,000. c)$1,000,000. c)$1,050,000. 11)The collection of a $3,500 account within the 4 percent discount period will result in a a)debit to Accounts Receivable for $3,360 b)credit to Cash for $3,360. c)debit to Sales Discounts for $140. d)credit to Accounts Receivable for $3,360. 14)An aging of a company's accounts receivable indicates that $7,000 are estimated to be uncollectible. If Allowance for Doubtful Accounts has a $2,000 debit balance, the adjustment to record bad debts for the period will require a a)credit to Allowance for Doubtful Accounts for $12,200. b)credit to Bad Debt Expense for $9,000. c)credit to Allowance for Doubtful Accounts for $9,000. d)debit to Bad Debt Expense for $5,800.
Riverbed Inc.’s April 30 inventory was destroyed by the explosion of an underground oil tank. January 1 inventory was $322,000 and purchases for January through April totalled $790,000. Sales for the same period were $1.2 million. Riverbed 's normal gross profit percentage is 30%.Using the gross profit method, estimate the amount of Riverbed 's April 30 inventory that was destroyed. Estimated ending inventory destroyed in explosion $enter a dollar amount of the ending inventory
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In December 2013, JB Masterpiece Merchandise Inc. had a significant portion of its inventory stolen. The company determined the cost of inventory remaining to be $32,400. The following information was taken from the records of the company: Purchases... Purchase returns and allowances. Sales.. **** Sales returns and allowances. Salaries.... Rent. Insurance Utilities.. ..... Jan. 1, 2013 to Date of Theft $141,670 . 7,250 05: (15 Mark) 275,600 3,400 . 10,100 . 5,340 .. 1,030 .. 1,115 4,925 1,890 .. 74,620 Advertising. Depreciation expense Beginning inventory Required: Estimate the cost of the stolen inventory. 2012 $156,430 6.580 283,300 2,900 12,900 7,120 1.340 1,435 3,741 2,106 69,780
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