On March 1, AYE Merchandising had an inventory of P560,000 in its retail store. Purchases made in March amount to P480,000 and March sales total P870,000. On April 1, a fire destroyed most of the inventory and the records kept by the enterprise. Gross profit rate on cost is 25%. Merchandise with a selling price of P10,000 remained undamaged after the fire while inventory with a selling price of P15,000 can be sold for P5.000, What is the estimated amount of fire loss?

On March 1, AYE Merchandising had an inventory of P560,000 in its retail store. Purchases made in March amount to P480,000 and March sales total P870,000. On April 1, a fire destroyed most of the inventory and the records kept by the enterprise. Gross profit rate on cost is 25%. Merchandise with a selling price of P10,000 remained undamaged after the fire while inventory with a selling price of P15,000 can be sold for P5.000, What is the estimated amount of fire loss?

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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