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

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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…
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Current Attempt in Progress Nash 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 $46,080 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. Inventory, Jan. 1, 2025 Markdowns (net) Markups (net) Purchases (net) Sales (net) Cost $46,080 167,600 Retail $76,800 16,640 28,160 227,840 213,760 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 2…
Please do not give solution in image format thanku
Please do not give solution in image format thanku