Required: Compute for the cost of inventory lost in the fire. PROBLEM 17: The following information relates to NNN , Inc. which accidentally met a fire onthe night of January 19, 2023:Inventory, July 1, 2022Purchases, July 1, 2022 to January 19, 2023Sales, July 1, 2022 to January 19, 2023P 51,600368,000583,00011,2005,8003,8008,600Purchase returnsPurchase discounts takenFreight inSales returnsThe fire destroyed the entire inventory except for purchases in transit, FOB shipping point ofP2,000 and goods having selling price of P4,900 that were salvaged from the fire. The averagegross profit rate on net sales is 40%.22. Compute for the cost of inventory lost in the fire.

The details are given by the company in which fire occured on night of 19th Jan 2023. Required…

PROBLEM 17: The following information relate the night of January 19, 2023: Inventory, July 1, 2022 Purchases, July 1, 2022 to J Sales, July 1, 2022 to Janua Purchase returns Purchase discounts taken Freight in Sales returns

PROBLEM 17: The following information relate the night of January 19, 2023: Inventory, July 1, 2022 Purchases, July 1, 2022 to J Sales, July 1, 2022 to Janua Purchase returns Purchase discounts taken Freight in Sales returns

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Property Insurance

Property insurance protects property from unforeseeable loss or damage and covers property owners' liability. Property insurance provides financial compensation to the property owner or renter in the event of damage or theft, as well as to someone other than the owner or renter if that person is injured on the property. Property insurance covers all risks of damage caused by theft, fire, flood, cyclones, lighting, and natural calamities, among other things. The primary goal of property insurance is to require the property owner to cover the loss. A monthly premium is paid to the insurance company, and in exchange, the insurance company pays for damage based on the agreement stated in the policy. Property insurance protects assets such as a vehicle, auto, car, rental home, house, and valuable property.

Question

Required: Compute for the cost of inventory lost in the fire.

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
P 51,600
368,000
583,000
11,200
5,800
3,800
8,600
Purchase returns
Purchase discounts taken
Freight in
Sales returns
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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