PROBLEM 21: A physical inventory taken on December 31, 2021 resulted in an ending inventoryof P1,440,000. San Salvador Company suspects some inventory may have been takenbyemployees. To estimate the cost of missing inventory, the following were gathered: Inventory, December 31, 2020 P 1,280,000 Purchases during 2021 5,640,000 Cash sales during 2021 1,400,000 Shipment received on December 26, 2021, included in physical inventory but not recorded as purchases 40,000 Deposits made with suppliers, entered as purchases. Goods were not received in 2021 80,000 Collections on accounts receivable, 2021 7,200,000 Accounts receivable, January 1, 2021 1,000,000 Accounts receivable, December 31, 2021 1,200,000 Gross profit percentage on sales 40% 27. At December 31, 2021, what is the estimated cost of missing inventory?
PROBLEM 21: A physical inventory taken on December 31, 2021 resulted in an ending inventoryof P1,440,000. San Salvador Company suspects some inventory may have been takenbyemployees. To estimate the cost of missing inventory, the following were gathered: Inventory, December 31, 2020 P 1,280,000 Purchases during 2021 5,640,000 Cash sales during 2021 1,400,000 Shipment received on December 26, 2021, included in physical inventory but not recorded as purchases 40,000 Deposits made with suppliers, entered as purchases. Goods were not received in 2021 80,000 Collections on accounts receivable, 2021 7,200,000 Accounts receivable, January 1, 2021 1,000,000 Accounts receivable, December 31, 2021 1,200,000 Gross profit percentage on sales 40% 27. At December 31, 2021, what is the estimated cost of missing inventory?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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PROBLEM 21: A physical inventory taken on December 31, 2021 resulted in an ending inventoryof P1,440,000. San Salvador Company suspects some inventory may have been takenbyemployees. To estimate the cost of missing
inventory, the following were gathered: Inventory, December 31, 2020 P 1,280,000
Purchases during 2021 5,640,000
Cash sales during 2021 1,400,000
Shipment received on December 26,
2021, included in physical inventory but
not recorded as purchases 40,000
Deposits made with suppliers, entered as
purchases. Goods were not received in
2021 80,000
Collections on
Accounts receivable, January 1, 2021 1,000,000
Accounts receivable, December 31, 2021 1,200,000
- Gross profit percentage on sales 40% 27. At December 31, 2021, what is the estimated cost of missing inventory?
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