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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

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

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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