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

Q: Sales 1,550,000 Sales returns and allowances 40.000 Employee discounts 12,500 Est. normal losses…

A: Retail Price is taken for damaged inventory Valuation,

Q: On September 28, 2019, a fire destroyed the entire merchandise inventory of Carroll Corporation. The…

A: The inventory valuation method used to evaluate the closing inventory and cost of goods sold on the…

Q: A fire destroyed a warehouse of the Goren Group, Inc., on May 4, 2021. Accounting records on that…

A: Cost of Goods sold = Sales - Gross profit =$8,200,000-8,200,000*20%  = $6,560,000

Q: On December 31, 2020, a fire broke out in the warehouse of Cialete Company, destroying all its…

A: An income statement is known by different names as a ‘profit and loss statement’, or “earnings…

Q: 860,000 692,000 ce 46,120 64,600 788,000 836,000 16,000 20,000

A: a. Gross profit Rate for 2020 as, (Gross profit/ net sales) x 100  Net sales - cost of goods sold…

Q: Crane Company lost all of its inventory in a fire on December 26, 2022. The accounting records…

A: The cost of goods sold is the formula used to compute the cost incurred on the goods sold during the…

Q: A company's inventory was destroyed in a fire on January 28, 2021. The company's December 31, 2020…

A:

Q: On September 30, 2021, Nueve Company reported that a fire caused severe damage to the entire…

A: Cost of goods sold refers to the amount incurred by an entity in the production process relating to…

Q: On March 17, 2021, a flood destroyed the entire inventory of Beatty Co. The following information is…

A:

Q: All goods were completely destroyed except for partially damaged goods that normally sell for…

A: Calculation of Closing Inventory: Particulars Amount(P) Opening Inventory, January 1 P1,320,000…

Q: A fire destroys all of the merchandise of Bonita Company on February 10, 2025. Presented below is…

A: Income statement is a financial statement that shows profitability, total revenue and total…

Q: Light Trading lost most of its inventory in a fire in December, 2023 just before the year-end…

A: Cost of goods sold means actual cost of goods that are being sold to customers. Gross profit and…

Q: On January 20, 2020, Stewart Company’s records revealed the following information: Inventory, July…

A: Inventory shows the current assets reported in the balance sheet.

Q: On November 21, 2021, a fire at Hodge Company’s warehouse caused severe damage to its entire…

A: Calculation of estimated loss: Inventory, November 1 $100,000 Net Purchases (from records)…

Q: A fire destroys all of the merchandise of Assante Company on February 10, 2020. Presented below is…

A: Closing stock = Cost of goods available for sale - Cost of goods sold First we need to calculate…

Q: 1. What is the amount of purchases for the current year? a. 1,700,000 b. 1,600,000 c. 1,500,000 d.…

A: When the inventory of the business lost, damaged or theft during the accounting period, it…

Q: Bartleby Graduate Inc. was organized on January 1, 2020. On December 31, 2021, the company lost most…

A: 1. Gross profit Rate for 2020 = (Gross profit/ net sales) x 100 Gross profit = Net sales - cost of…

Q: On September 28, 2019, a fire destroyed the entire merchandise inventory of the Alfonso Corporation.…

A: Cost of goods sold = Sales / (1 + Markup) = P540,000 / (1+0.20) = P450,000

Q: A company's inventory was destroyed in a fire on January 28, 2020. The company's December 31, 2019…

A: Cost of goods sold = Sales - Gross profit where, Gross profit = Sales x Gross profit rate

Q: n September 30, 2020, a fire destroyed most of merchandise inventory of Karrie Company. All goods…

A: solution : step 1 first let us calculate average gross profit of past three years total sale =…

Q: A fire destroys all of the merchandise -4 of A Company on January , 2020. Presented Below is…

A: Inventory refers to the value of the stock which is computed on the basis of the number of goods and…

Q: . Nectarine Company lost most of its inventory in a fire in December, 2021, just before the year-…

A: The question is related to calculation of loss as a result of fire. We will first calculate the…

Q: Wormold Industries suffered a fire in its warehouse on March 4, 2021. The warehouse was full of…

A: Gross profit method It is a method under which the historical gross profit percentage is applied to…

Q: Tex. Hodge estimates that all usable damaged goods can be sold for $22,000. The following…

A: Gross profit is the difference between sales revenue and cost of goods sold. The cost of goods sold…

Q: On December 31, 2020, a fire broke out in the warehouse of Cialete Company, destroying all its…

A: Goods sent on a consignment basis refers to when goods are sent by the owner (consignor) to an agent…

Q: ABC Corporation lost most of its inventory in a fire oe April 10, 2020. ts books dinclon following…

A: In order to calculate the stock destroyed we need to calculate the ending inventory as on the date…

Q: On November 21, 2021, a fire at Hodge Company’s warehouse caused severe damage to its entire…

A: Gross profit is the difference between the sales revenue (net) and cost of goods sold. Gross profit…

Q: Late on the night of August 30, 2021, an arsonist destroyed the FAITHFUL Inc's warehouse which was…

A: Gross profit = $745,200*40% Gross profit = $298,080

Q: On January 15, 2020, a strong monsoon hit the country and destroyed all the inventory of Aeirron…

A: Gross profit is the profit earned by the company from their operating activities. It can be…

Q: On November 21, 2024, a fire at Hodge Company’s warehouse caused severe damage to its entire…

A: Gross profit is the excess of sales over the cost of goods sold. Thus gross profit ratio is…

Q: On June 30, 2021, a fire at Norjanna Company’s only warehouse caused severe damage to its inventory.…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Lisbon Pottery lost 70% of its inventory in a fire on March 25, 2020. The accounting records showed…

A: Gross profit rate refers to the ratio which states how much profit the business makes from the sale…

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.