Old Rose Company's pricing structure has been established to yield a gross margin of 30%. The following data pertain to the year ended December 31, 2019: Sales - P2,000,000 Inventory, January 1 2019 - 1,000,000 Purchases - P800,000 Freight cost on purchases - P20,000 Freight cost on merchandise sold - P30,000 Inventory inside the company's warehouse, per actual account on December 31, 2019 - P160,000 Credit Memo issued to customers for goods returned and received - P50,000 Credit memos issued to customers for merchandise to be returned, January 2, 2020 - P40,000 Sales Discount - P100,000 Old Rose Company is satisfied that all sales and purchases have been fully and properly recorded. REQUIRED: How much would Old Rose Company reasonably estimate as a shortage in inventory at December 31, 2019? WITH EXPLANATION PLS!

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Old Rose Company's pricing structure has been established to yielda
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Old Rose Company's pricing structure has been established to yield a gross margin of 30%. The
following data pertain to the year ended December 31, 2019: Sales - P2,000,000 Inventory,
January 1 2019 - 1,000,000 Purchases - P800,000 Freight cost on purchases - P20,000 Freight
cost on merchandise sold - P30,000 Inventory inside the company's warehouse, per actual
account on December 31, 2019 - P160,000 Credit Memo issued to customers for goods returned
and received - P50,000 Credit memos issued to customers for merchandise to be returned,
January 2, 2020 - P40,000 Sales Discount - P100,000 Old Rose Company is satisfied that all
sales and purchases have been fully and properly recorded. REQUIRED: How much would Old
Rose Company reasonably estimate as a shortage in inventory at December 31, 2019? WITH
EXPLANATION PLS!
here to search
SUS
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13 ))
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f4
f5
f6
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Transcribed Image Text:Acounting Q&A Library Old Rose Company's pricing structure has been established to yielda Rose Company's pricing structure has been estab Start your trial now! First week only Question Old Rose Company's pricing structure has been established to yield a gross margin of 30%. The following data pertain to the year ended December 31, 2019: Sales - P2,000,000 Inventory, January 1 2019 - 1,000,000 Purchases - P800,000 Freight cost on purchases - P20,000 Freight cost on merchandise sold - P30,000 Inventory inside the company's warehouse, per actual account on December 31, 2019 - P160,000 Credit Memo issued to customers for goods returned and received - P50,000 Credit memos issued to customers for merchandise to be returned, January 2, 2020 - P40,000 Sales Discount - P100,000 Old Rose Company is satisfied that all sales and purchases have been fully and properly recorded. REQUIRED: How much would Old Rose Company reasonably estimate as a shortage in inventory at December 31, 2019? WITH EXPLANATION PLS! here to search SUS ッ 13 )) f8D f4 f5 f6 f7 23 24 & 3 4 6 7
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