On May 17, it was discovered that a material amount of inventory had been stolen. A physical count discloses that P55,000 of merchandise was on hand as of May 17. The following additional data is available from the accounting records: Inventory, January 1 ...................................................................... P 62,000 Purchases, January 1 - May 17 (includes P4,000 shipped FOB shipping point May 16, received May 19) ...............................114,000 Sales (goods delivered to customers), Jan 1 - May 17........90,000 Records indicate that the company's gross profit has averaged 40 percent of selling prices. Estimate the amount of loss due to theft.
On May 17, it was discovered that a material amount of inventory had been stolen. A physical count discloses that P55,000 of merchandise was on hand as of May 17. The following additional data is available from the accounting records:
Inventory, January 1 ...................................................................... P 62,000
Purchases, January 1 - May 17 (includes P4,000 shipped FOB shipping point May 16, received May 19) ...............................114,000
Sales (goods delivered to customers), Jan 1 - May 17........90,000
Records indicate that the company's gross profit has averaged 40 percent of selling prices. Estimate the amount of loss due to theft.
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