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PROBLEM 16: On May 6, 2023, a flashflood caused damage to the merchandise stored in the warehouse of Rome Company. You were asked to submit an estimate of the merchandise destroyed in the warehouse. The following data were established: A. Net sales for 2022 were P800,000 matched against cost of P560,000. B. Merchandise inventory, January 1, 2023 was P200,000, 90% of which was in the warehouse and 10% in the downtown showrooms. C. For January 1, 2023 to date of flood, you ascertained that the invoice value of purchases, all of which were stored in the warehouse, P100,000; freight inward, P4,000: purchases retumed, P6,000. D. Cost of merchandise transferred from the warehouse to showrooms was P8,000 and net sales from January 1 to May 6. 2023, all of which were warehouse stock, were P320,000. E. There was no change in the gross profit rate adopted by the company in 2023. 21. What is the estimated merchandise destroyed by the flood? PROBLEM 17: The following information relates to NNN , Inc. which accidentally met a fire on the night of January 19, 2023: P 51,600 Inventory, July 1, 2022 Purchases, July 1, 2022 to January 19, 2023 Sales, July 1, 2022 to January 19, 2023 Purchase returns 368,000 583,000 11,200 5,800 Purchase discounts taken Freight in Sales returns 3.800 8,600 The fire destroyed the entire inventory except for purchases in transit, FOB shipping point of P2,000 and goods having selling price of P4,900 that were salvaged from the fire. The average gross profit rate on net sales is 40%. 22. Compute for the cost of inventory lost in the fire.

PROBLEM 16: On May 6, 2023, a flashflood caused damage to the merchandise stored in the warehouse of Rome Company. You were asked to submit an estimate of the merchandise destroyed in the warehouse. The following data were established: A. Net sales for 2022 were P800,000 matched against cost of P560,000. B. Merchandise inventory, January 1, 2023 was P200,000, 90% of which was in the warehouse and 10% in the downtown showrooms. C. For January 1, 2023 to date of flood, you ascertained that the invoice value of purchases, all of which were stored in the warehouse, P100,000; freight inward, P4,000: purchases retumed, P6,000. D. Cost of merchandise transferred from the warehouse to showrooms was P8,000 and net sales from January 1 to May 6. 2023, all of which were warehouse stock, were P320,000. E. There was no change in the gross profit rate adopted by the company in 2023. 21. What is the estimated merchandise destroyed by the flood? PROBLEM 17: The following information relates to NNN , Inc. which accidentally met a fire on the night of January 19, 2023: P 51,600 Inventory, July 1, 2022 Purchases, July 1, 2022 to January 19, 2023 Sales, July 1, 2022 to January 19, 2023 Purchase returns 368,000 583,000 11,200 5,800 Purchase discounts taken Freight in Sales returns 3.800 8,600 The fire destroyed the entire inventory except for purchases in transit, FOB shipping point of P2,000 and goods having selling price of P4,900 that were salvaged from the fire. The average gross profit rate on net sales is 40%. 22. Compute for the cost of inventory lost in the fire.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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PROBLEM 16: On May 6, 2023, a flashflood caused damage to the merchandise stored in the warehouse of Rome Company. You were asked to submit an estimate of the merchandise destroyed in the warehouse. The following data were established: A. Net sales for 2022 were P800,000 matched against cost of P560,000. B. Merchandise inventory, January 1, 2023 was P200,000, 90% of which was in the warehouse and 10% in the downtown showrooms. C. For January 1, 2023 to date of flood, you ascertained that the invoice value of purchases, all of which were stored in the warehouse, P100,000; freight inward, P4,000; purchases retumed, P6,000. D. Cost of merchandise transferred from the warehouse to showrooms was P8,000 and net sales from January 1 to May 6. 2023, all of which were warehouse stock, were P320,000. E. There was no change in the gross profit rate adopted by the company in 2023. 21. What is the estimated merchandise destroyed by the flood? PROBLEM 17: The following information relates to NNN , Inc. which accidentally met a fire on the night of January 19, 2023: Inventory, July 1, 2022 Purchases, July 1, 2022 to January 19, 2023 Sales, July 1, 2022 to January 19, 2023 Purchase returns P 51,600 368,000 583,000 11,200 5,800 Purchase discounts taken Freight in Sales returns 3,800 8,600 The fire destroyed the entire inventory except for purchases in transit, FOB shipping point of P2,000 and goods having selling price of P4,900 that were salvaged from the fire. The average gross profit rate on net sales is 40%. 22. Compute for the cost of inventory lost in the fire.
Transcribed Image Text:PROBLEM 16: On May 6, 2023, a flashflood caused damage to the merchandise stored in the warehouse of Rome Company. You were asked to submit an estimate of the merchandise destroyed in the warehouse. The following data were established: A. Net sales for 2022 were P800,000 matched against cost of P560,000. B. Merchandise inventory, January 1, 2023 was P200,000, 90% of which was in the warehouse and 10% in the downtown showrooms. C. For January 1, 2023 to date of flood, you ascertained that the invoice value of purchases, all of which were stored in the warehouse, P100,000; freight inward, P4,000; purchases retumed, P6,000. D. Cost of merchandise transferred from the warehouse to showrooms was P8,000 and net sales from January 1 to May 6. 2023, all of which were warehouse stock, were P320,000. E. There was no change in the gross profit rate adopted by the company in 2023. 21. What is the estimated merchandise destroyed by the flood? PROBLEM 17: The following information relates to NNN , Inc. which accidentally met a fire on the night of January 19, 2023: Inventory, July 1, 2022 Purchases, July 1, 2022 to January 19, 2023 Sales, July 1, 2022 to January 19, 2023 Purchase returns P 51,600 368,000 583,000 11,200 5,800 Purchase discounts taken Freight in Sales returns 3,800 8,600 The fire destroyed the entire inventory except for purchases in transit, FOB shipping point of P2,000 and goods having selling price of P4,900 that were salvaged from the fire. The average gross profit rate on net sales is 40%. 22. Compute for the cost of inventory lost in the fire.
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