Required: How much is the inventory loss due to fire? PROBLEM 18: San Jose Corporation was organized on January 1, 2020. On December 31, 2021,the corporation lost most of its inventory in a warehouse fire just before the year end count ofinventory was to take place. Data records disclosed the following:20202021Beginning inventoryPurchasesP 1,020,0003,460,0004,300,000Purchase returns and allowances230,6003,940,000323,0004,180,000SalesSales returns and allowances80,000100,000On January 1, 2021, the corporation's pricing policy was changed so that the gross profit ratewould be 3% points higher than the one earned in 2020. Salvaged undamaged merchandisewas marked to sell at P120,000 while damaged merchandise marked to sell at P80,000 had anestimated realizable value of P18,000.23. How much is the inventory loss due to fire?

The details for two years are given as fire occured and the stock was damaged. Required How much is…

PROBLEM 18: San Jose Corporation was organized on January 1, 2 the corporation lost most of its inventory in a warehouse fire just b inventory was to take place. Data records disclosed the following: 2020 Beginning inventory Purchases P 4,300,000 230,600 3,940,000 Purchase returns and allowances Sales Sales returns and allowances 80,000 On January 1, 2021, the corporation's pricing policy was changed

PROBLEM 18: San Jose Corporation was organized on January 1, 2 the corporation lost most of its inventory in a warehouse fire just b inventory was to take place. Data records disclosed the following: 2020 Beginning inventory Purchases P 4,300,000 230,600 3,940,000 Purchase returns and allowances Sales Sales returns and allowances 80,000 On January 1, 2021, the corporation's pricing policy was changed

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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.

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Required: How much is the inventory loss due to fire?

PROBLEM 18: San Jose Corporation was organized on January 1, 2020. On December 31, 2021,
the corporation lost most of its inventory in a warehouse fire just before the year end count of
inventory was to take place. Data records disclosed the following:
2020
2021
Beginning inventory
Purchases
P 1,020,000
3,460,000
4,300,000
Purchase returns and allowances
230,600
3,940,000
323,000
4,180,000
Sales
Sales returns and allowances
80,000
100,000
On January 1, 2021, the corporation's pricing policy was changed so that the gross profit rate
would be 3% points higher than the one earned in 2020. Salvaged undamaged merchandise
was marked to sell at P120,000 while damaged merchandise marked to sell at P80,000 had an
estimated realizable value of P18,000.
23. How much is the inventory loss due to fire?

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