PROBLEM 19: San Juan Manufacturing began operations 5 years ago. On August 13, 2021, a fire broke out in the warehouse destroying all inventory and many records relating to the inventory. The information available is presented below (all sales and purchases are on account): 1/1/2021 8/13/2021 Inventory P 143,850 Accounts receivable 130,590 P 128,890 Accounts payable Collections on accounts 88,140 122,850 receivable, 1/1 to 8/13 753,800 Payments to suppliers, 1/1 to 8/13 487,500 Goods out on consignment at 8/13 at cost 52,900 Summary on previous years’ sales follows: 2018 2019 2020 Sales P 626,000P P705,000 P 680,000 Gross profit 187,800 225,600 231,200 24. What is the inventory loss suffered as a result of the fire if the average gross profit rate is used? 25. What is the inventory loss suffered as a result of the fire if the trend in gross profit rate continues?
PROBLEM 19: San Juan Manufacturing began operations 5 years ago. On August 13, 2021, a fire broke out in the warehouse destroying all inventory and many records relating to the inventory. The information available is presented below (all sales and purchases are on account):
1/1/2021
8/13/2021
Inventory P 143,850
Accounts payable
Collections on accounts 88,140 122,850
receivable, 1/1 to 8/13 753,800
Payments to suppliers, 1/1 to
8/13 487,500
Goods out on consignment
at 8/13 at cost 52,900
Summary on previous years’ sales follows:
2018 2019 2020
Sales P 626,000P P705,000 P 680,000
Gross profit 187,800 225,600 231,200
24. What is the inventory loss suffered as a result of the fire if the average gross profit rate is used?
25. What is the inventory loss suffered as a result of the fire if the trend in gross profit rate continues?
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