In its second year of operation, Painter Inc. noticed possible theft of its inventories. It gathered the following information from its operations: 1" Year 2d year Purchases P 1,200,000 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 Sales discount 100,000 250,000 120,000 150,000 Cost of sales 900,000 ??? If the physical ending inventory were valued at P325,000, how much is the estimated loss from inventory theft?

In its second year of operation, Painter Inc. noticed possible theft of its inventories. It gathered the following information from its operations: 1" Year 2d year Purchases P 1,200,000 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 Sales discount 100,000 250,000 120,000 150,000 Cost of sales 900,000 ??? If the physical ending inventory were valued at P325,000, how much is the estimated loss from inventory theft?

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter11: Auditing Inventory, Goods And Services, And Accounts Payable: The Acquisition And Payment Cycle

Section: Chapter Questions

Problem 26RQSC

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