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On December 31, 2020, a fire broke out in the warehouse of Cialete Company, destroying all its inventory. The following information is presented for 2020:    January 1 December 31  Inventory P 750,000  Accounts Receivable 510,000 P 490,000  Accounts Payable 350,000 590,000  Collection on accounts receivable 3,100,000  Payment to suppliers 1,950,000  Goods out on consignment at sales price 310,000  Salvage value of inventory 45,000    2019 2018 2017  Sales P3,000,000 P2,750,000 P2,100,000  Gross Profit 1,200,000 1,045,000 756,000    Requirements: Compute the following on December 31, 2020  Purchases  Sales  Inventory Loss

On December 31, 2020, a fire broke out in the warehouse of Cialete Company, destroying all its inventory. The following information is presented for 2020:    January 1 December 31  Inventory P 750,000  Accounts Receivable 510,000 P 490,000  Accounts Payable 350,000 590,000  Collection on accounts receivable 3,100,000  Payment to suppliers 1,950,000  Goods out on consignment at sales price 310,000  Salvage value of inventory 45,000    2019 2018 2017  Sales P3,000,000 P2,750,000 P2,100,000  Gross Profit 1,200,000 1,045,000 756,000    Requirements: Compute the following on December 31, 2020  Purchases  Sales  Inventory Loss

FINANCIAL ACCOUNTING
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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On December 31, 2020, a fire broke out in the warehouse of Cialete Company, destroying all its inventory. The following information is presented for 2020: 

 

January 1 December 31 

Inventory P 750,000 

Accounts Receivable 510,000 P 490,000 

Accounts Payable 350,000 590,000 

Collection on accounts receivable 3,100,000 

Payment to suppliers 1,950,000 

Goods out on consignment at sales price 310,000 

Salvage value of inventory 45,000 

 

2019 2018 2017 

Sales P3,000,000 P2,750,000 P2,100,000 

Gross Profit 1,200,000 1,045,000 756,000 

 

Requirements: Compute the following on December 31, 2020 

  1. Purchases 
  2. Sales 
  3. Inventory Loss
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