On September 14, 2020, a typhoon damaged a warehouse of TULIP Corporation. The entire company and many accounting records stored in the warehouse were completely destroyed. Although the inventory was not insured, a portion could be sold for scrap. Through the use of microfilmed records
On September 14, 2020, a typhoon damaged a warehouse of TULIP Corporation. The entire company and many accounting records stored in the warehouse were completely destroyed. Although the inventory was not insured, a portion could be sold for scrap. Through the use of microfilmed records
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On September 14, 2020, a typhoon damaged a warehouse of TULIP Corporation. The entire company and many accounting records stored in the warehouse were completely destroyed. Although the inventory was not insured, a portion could be sold for scrap. Through the use of microfilmed records, the following data were gathered
How much is the value of inventory loss?
Transcribed Image Text:750,000
Inventory, January 1
Purchases, January to September 14
Cash sales, January to September 14
Collection of accounts receivables, January 1- Sept.14
2,770,000
450,000
4,230,000
50,000
Accounts receivable written-off
Accounts receivable, January 1
Accounts receivable, September 14
Net realizable value of damaged inventory
350,000
530,000
20,000
Gross profit percentage on sale
32%
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