Problem 13-6 (AICPA Adapted)On December 31, 2020, a big fire caused severe damage to theWhat amount should be reported as inventory fire loss?At the beginning of 2020, the entity changed the policy on thesalvaged. Damaged merchandise marked to sell at P100,000profit rate of 5% higher than the gross profit rate in 2019.had an estimated realizable value of P10,000.warehouse of Claire Company.Undamaged merchandise marked to sell at P500,000 wasselling prices of the merchandise in order to produce a gross20202019Beginning inventoryPurchasesPurchase returnSales1,000,0008,000,000500,0009,000,0005,600,000100,0006,000,000onse St rate of 5% higher than the gross profit rate in 2019.Uadamaged merchandise marked to sell at P500,000 wassalve estimated realizable value of P10,000.a. 2,200,000b. 1,840,000c. 1,600,000d. 1,780,000

Merchandisers (wholesalers, retailers and distributors) buy inventory with the intention of selling…

Problem 13-6 (AICPA Adapted) On December 31, 2020, a big fire caused severe damage to the warehouse of Claire Company. 2020 Beginning inventory Purchases Purchase return Sales 2019 1,000,000 8,000,000 500,000 9,000,000 5,600,000 100,000 6,000,000 At the beginning of 2020, the entity changed the policy on the selling prices of the merchandise in order to produce a gross profit rate of 5% higher than the gross profit rate in 2019. Undamaged merchandise marked to sell at P500,000 was salvaged. Damaged merchandise marked to sell at P100,000 had an estimated realizable value of P10,000. What amount should be reported as inventory fire loss? a. 2,200,000 b. 1,840,000 c. 1,600,000 d. 1,780,000

Problem 13-6 (AICPA Adapted) On December 31, 2020, a big fire caused severe damage to the warehouse of Claire Company. 2020 Beginning inventory Purchases Purchase return Sales 2019 1,000,000 8,000,000 500,000 9,000,000 5,600,000 100,000 6,000,000 At the beginning of 2020, the entity changed the policy on the selling prices of the merchandise in order to produce a gross profit rate of 5% higher than the gross profit rate in 2019. Undamaged merchandise marked to sell at P500,000 was salvaged. Damaged merchandise marked to sell at P100,000 had an estimated realizable value of P10,000. What amount should be reported as inventory fire loss? a. 2,200,000 b. 1,840,000 c. 1,600,000 d. 1,780,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Please help me
. Nectarine Company lost most of its inventory in a fire in December, 2021, just before the year- end physical inventory was taken. The company's books disclosed the following: Invy, 1/1/21 - 1,700,000 - 3,900,000 300,000 6,500,000 240,000 Purchases Purchase return Sales %3 Sales returns Merchandise costing P126,000 remain undamaged after the fire. Damaged merchandise with an original selling price of P150,000 had a net realizable value of P53,000. A partial comparative profit and loss for 2020 and 2019 also disclosed the following: 2020: Sales - 5,000,000; CGS - 3,025,000 2019: Sales - 5,600,000; CGS - 3,332,000 Assuming that Nectarine Company had no insurance coverage, what is the amount of loss as a result of the fire? *
Required: How much is the inventory loss due to fire?
Complete the missing piece of information involving the changes in inventory, and their relationship to goods available for sale, for the two years shown: 2021 2022 Beginning inventory $11,000 $7,200 Purchases 22,000 2,500 Goods available for sale $33,000 $fill in the blank 1 Ending inventory 7,200 fill in the blank 2 Cost of goods sold $fill in the blank 3 $8,100
This window shows your responses and what was marked correct and incorrect from your previous attempt. Exercise 9-14 (Algo) Conventional retail method [LO9-3] Campbell Corporation uses the retail method to value its inventory. The following information is available for the year 2021: Retail $350,000 910,000 Cost Merchandise inventory, January 1, 2021 Purchases $260,000 544,420 10,800 Freight-in Net markups Net markdowns 34,000 18,000 870,000 Net sales Required: Determine the December 31, 2021, inventory by applying the conventional retail method using the information provided. (Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.). Enter amounts to be deducted with a minus sign.) Cost-to- Retail Ratio Cost Retail 24 260,000 $ 350,000 Beginning inventory 544,420 910,000 Purchases 10,800 Freight-in 34,000 Net markups 1,294,000 (18,000) Net markdowns 815,220 1,276,000 Goods available for sale 74.29 X % Cost-to-retail percentage (870,000) Net sales $…
Sh4
Current Attempt in Progress Cullumber Company began operations on January 1, 2024, adopting the conventional retail inventory system. None of the company's merchandise was marked down in 2024 and, because there was no beginning inventory, its ending inventory for 2024 of $31,248 would have been the same under either the conventional retail system or the LIFO retail system. On December 31, 2025, the store management considers adopting the LIFO retail system and desires to know how the December 31, 2025, inventory would appear under both systems. All pertinent data regarding purchases, sales, markups, and markdowns are shown below. There has been no change in the price level. Cost Retail Inventory, Jan. 1, 2025 $31,248 $50,400 Markdowns (net) 10,920 Markups (net) 18,480 Purchases (net) 109,960 149,520 Sales (net) 140,280 Determine the cost of the 2025 ending inventory under both (a) the conventional retail method and (b) the LIFO retail method. (Round ratios for computational purposes to…
ss
Help
Please do not give solution in image format thanku
Why is $106,000 the answer?
Qw.13.