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: On September 14, 2020, a typhoon damaged a warehouse of TULIP Corporation. The entire company and…

A: Particulars Amount($) Collection of accounts receivables 4,230,000 Add: Ending accounts…

Q: The Main Company requires an estimate of cost of goods lost in a fire on May 10, 2019. Merchandise…

A: Inventory is the detailed list of items that are present on hand. It constitute of all the finished…

Q: On April 15 of the current year, a fire destroyed the entire uninsured inventory of a retail store.…

A: Gross profit means the difference between the sale revenue and cost of production. Sale means the…

Q: 1. A fire destroys all of the merchandise of Assante Company on February 10, 2020. Presented belo is…

A:

Q: On April 15 of the current year, a fire destroyed the entire uninsüred are available: Sales, January…

A: Solution: Option(a) . 120,000 is the correct answer. The amount of inventory loss estimated…

Q: On June 19, 20X0, a fire destroyed the entire uninsured merchandise inventory of the ABC…

A: Cost of goods sold means the cost incurred on the goods which has been sold including all direct…

Q: On August 31, a hurricane destroyed a retail location of Vinny's Clothier including the entire…

A: Effective inventory management is important to the success of any business that sells physical…

Q: The merchandise inventory was destroyed by fire on December 13. The following data were obtained…

A:

Q: Sheffield Inc.’s April 30 inventory was destroyed by the explosion of an underground oil tank.…

A: working note 1. Gross profit  margin  formula =Gross profit/Net sales * 100 Gross profit will be…

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

A:

Q: Flounder Hardware Limited reported the following amounts for its cost of goods sold and Inventory:…

A: The objective of the question is to understand the impact of the errors made by Flounder Hardware…

Q: The financial records of DISGRASYA Inc. were destroyed by fire at the end of 2020. Selected…

A: 1. Income statement:   It is a financial statement that calculates the net income generated by the…

Q: Blazing Red Company began operations in 2016. On August 28 inventory and most of the accounting…

A: Based on the facts given in the above problem we will plot the data into the profit and loss…

Q: Sheridan Music Company sells three principal types of musical instruments, with varying percentages…

A: Solution: Estimated inventory amount before Fire Particulars Harps Violins Cellos Sales…

Q: Required: Calculate the amount of the insurance claim to be filed for the inventory destroyed in the…

A: The company takes the insurance policy on the inventory to protect the loss from the inventory…

Q: PROBLEM 21: A physical inventory taken on December 31, 2021 resulted in an ending inventory of…

A: Given Information: Ending inventory as on December 31, 2021 - P1,440,000

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

A: Gross profit ratio = Gross profit / Sales where, Gross profit = Sales - Cost of goods sold

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: Aljohn Company's year-end financial statements contained the following errors: 12.31.2021 12.31.2022…

A: given      ending inventory understated for 12.31.2021  For P95,000 and overstated for 12.31.2022…

Q: The Star Company's inventory was partially destroyed on July 4, 2004, when its warehouse caught on…

A: The entity saved an inventory of $ 8500, which means the remaining inventory is destroyed by fire.…

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: Blue Tool Company's December 31 year-end financial statements contained the following errors.…

A: Working capital is the difference between total current assets and total current liabilities.Net…

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.