On October 1, 2021, the warehouse of ABC Co. and all inventories contained therein were damaged by flood. Off-site back up of data base shows the following information: Inventory, Jan. I Accounts payable, Jan. 1 Accounts payable, Sept. 30 Payments to suppliers Freight-in Purchase returms and discounts Sales from Jan. to Sept. Sales returns Sales discounts 14,500 6,000 3,000 50,000 5,000 2.500 75,000 5,000 2.000 Gross profit rate based on sales 20% Addirional information: Goods in transit as of October 1, 2021 amounted to P2,000, cost of goods out on consignment is PI,200, and materials damaged by flood can be sold at a salvage value of P500.
On October 1, 2021, the warehouse of ABC Co. and all inventories contained therein were damaged by flood. Off-site back up of data base shows the following information: Inventory, Jan. I Accounts payable, Jan. 1 Accounts payable, Sept. 30 Payments to suppliers Freight-in Purchase returms and discounts Sales from Jan. to Sept. Sales returns Sales discounts 14,500 6,000 3,000 50,000 5,000 2.500 75,000 5,000 2.000 Gross profit rate based on sales 20% Addirional information: Goods in transit as of October 1, 2021 amounted to P2,000, cost of goods out on consignment is PI,200, and materials damaged by flood can be sold at a salvage value of P500.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
Please explain in detail
Transcribed Image Text:How much Is the inventory loss due to the flood?"
On October 1, 2021, the warehouse of ABC Co. and all inventories contained therein were damaged by
flood. Off-site back up of data base shows the following information:
Inventory, Jan. 1
Accounts payable, Jan. 1
Accounts payable, Sept. 30
Payments to suppliers
Freight-in
Purchase returms and discounts
Sales from Jan. to Sept.
Sales returns
Sales discounts
Gross profit rate based on sales
14,500
6,000
3,000
50,000
5,000
2,500
75,000
5,000
2.000
20%
Additional information:
Goods in transit as of October 1, 2021 amounted to P2,000, cost of goods out on consignment is P1,200,
and materials damaged by flood can be sold at a salvage value of PS00.
O 6,800
O 7,200
O 7,800
8,200
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education