Problem 13-9 (IAA) At year-end, a storm surge damaged the warehouse of Braveheart Company. The entire inventory and many accounting records were completely destroyed. January 1 December 31 1,500,000 Inventory Purchases Cash sales Collections of accounts receivable Accounts receivable Gross profit rate on sales 5,500,000 8,400,000 000'006 000'001'T %0% 700,000 What amount should be reported as inventory loss from the storm surge? a. 1,180,000 b. 1,720,000 c. 2,700,000 d. 2,260,000 200000

Problem 13-9 (IAA) At year-end, a storm surge damaged the warehouse of Braveheart Company. The entire inventory and many accounting records were completely destroyed. January 1 December 31 1,500,000 Inventory Purchases Cash sales Collections of accounts receivable Accounts receivable Gross profit rate on sales 5,500,000 8,400,000 000'006 000'001'T %0% 700,000 What amount should be reported as inventory loss from the storm surge? a. 1,180,000 b. 1,720,000 c. 2,700,000 d. 2,260,000 200000

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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PROBLEM 17 On January 15, 2020, a strong monsoon hit the country and destroyed all the inventory of Aeirron Company stored in the warehouse. The following information is available from the records of the company's periodic inventory system: ww Beginning inventory Purchases, January1 to January 15, 2020 Sales, January 1 to January 15, 2020 P1,000.000 500,000 800,000 The following are the past performance of Aeirron Company: 2019 2018 Sales P4,500,000 P4,100,000 Cost of Sales 2,300,000 2,500,000 Requirements: 1. Compute the gross profit rate of the company for the pastyears. 2. Compute the inventory lost in monsoon.
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