On May 21, 2014, a fire destroyed the entire merchandise inventory on hand of Natural Corporation. The following information is available: Sales, January 1 through May 2, 2014 Sales return (covering the same period) Sales allowance (covering the same period) Sales discounts (covering the same period) Inventory, January 1, 2014 Purchases, January 1 through May 2, 2014 (including P40,000 of goods in transit on May 2, 2014 shipped FOB shipping point) Purchase discounts Purchase returns and allowances Mark-up percentage on cost P380,000 20,000 10,000 25,000 80,000 400,000 40,000 30,000 20%

On May 21, 2014, a fire destroyed the entire merchandise inventory on hand of Natural Corporation. The following information is available: Sales, January 1 through May 2, 2014 Sales return (covering the same period) Sales allowance (covering the same period) Sales discounts (covering the same period) Inventory, January 1, 2014 Purchases, January 1 through May 2, 2014 (including P40,000 of goods in transit on May 2, 2014 shipped FOB shipping point) Purchase discounts Purchase returns and allowances Mark-up percentage on cost P380,000 20,000 10,000 25,000 80,000 400,000 40,000 30,000 20%

Name: AUDITING PROBLEM - AUDIT OF INVENTORIES1. What is the estimated invent
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Description: AUDITING PROBLEM - AUDIT OF INVENTORIES1. What is the estimated inventory on May 2, 2014 immediately prior to the fire?2. How much should be recognized as inventory loss? On May 21, 2014, a fire destroyed the entire merchandise inventory on hand of N

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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