On May 6, 2023, a flashflood caused damage to the merchandise stored in the warehouse of Rome Company. You were asked to submit an estimate of the merchandise destroyed in the warehouse. The following data were established: A. Net sales for 2022 were P800,000 matched against cost of P560,000. B. Merchandise inventory, January 1, 2023 was P200,000, 90% of which was in the warehouse and 10% in the downtown showrooms. C. For January 1, 2023 to date of flood, you ascertained that the invoice value of purchases, all of which were stored in the warehouse, P100,000; freight inward, P4,000; purchases returned, P6,000. D. Cost of merchandise transferred from the warehouse to showrooms was P8,000 and net sales from January 1 to May 6, 2023, all of which were warehouse stock, were P320,000. E. There was no change in the gross profit rate adopted by the company in 2023. 21. What is the estimated merchandise destroyed by the flood?
PROBLEM 16: On May 6, 2023, a flashflood caused damage to the merchandise stored in the warehouse of Rome Company. You were asked to submit an estimate of the merchandise destroyed in the warehouse. The following data were established:
A. Net sales for 2022 were P800,000 matched against cost of P560,000.
B. Merchandise inventory, January 1, 2023 was P200,000, 90% of which was in the warehouse and 10% in the downtown showrooms.
C. For January 1, 2023 to date of flood, you ascertained that the invoice value of purchases, all of which were stored in the warehouse, P100,000; freight inward, P4,000; purchases returned, P6,000.
D. Cost of merchandise transferred from the warehouse to showrooms was P8,000 and net sales from January 1 to May 6, 2023, all of which were warehouse stock, were
P320,000.
E. There was no change in the gross profit rate adopted by the company in 2023.
21. What is the estimated merchandise destroyed by the flood?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
