Problem 4 On July 21, 2021, there was a fire that destroyed PIRENA Company's warehouse and inventory records. The following information about sales and salvaged documents revealed the following: • Inventory, Jan. 1 - P485,000 • Purchases - January to July 21 o Cost of purchases - P1,560,300 o Freight-in -P39,700 o Purchase returns P80,000 o Purchase discounts - P20,000 • Sales - January to July 21 o Sales - P2,000,000 o Sales discounts P500,000 o Sales discounts forfeited - P20,000 • The gross profit is 20% for the last five years. The company also provided information: o Goods out on consignment, at cost - P30,000 o Goods purchased still in transit, FOB destination P25,000 o Cost of undamaged goods at selling price - P100,000 How much is the estimated cost of goods sold?
Problem 4 On July 21, 2021, there was a fire that destroyed PIRENA Company's warehouse and inventory records. The following information about sales and salvaged documents revealed the following: • Inventory, Jan. 1 - P485,000 • Purchases - January to July 21 o Cost of purchases - P1,560,300 o Freight-in -P39,700 o Purchase returns P80,000 o Purchase discounts - P20,000 • Sales - January to July 21 o Sales - P2,000,000 o Sales discounts P500,000 o Sales discounts forfeited - P20,000 • The gross profit is 20% for the last five years. The company also provided information: o Goods out on consignment, at cost - P30,000 o Goods purchased still in transit, FOB destination P25,000 o Cost of undamaged goods at selling price - P100,000 How much is the estimated cost of goods sold?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Problem 4
On July 21, 2021, there was a fire that destroyed PIRENA Company's warehouse and inventory
records. The following information about sales and salvaged documents revealed the following:
• Inventory, Jan. 1 - P485,000
• Purchases - January to July 21
o Cost of purchases - P1,560,300
o Freight-in -P39,700
o Purchase returns P80,000
o Purchase discounts P20,000
• Sales - January to July 21
o Sales P2,000,000
o Sales discounts P500,000
o Sales discounts forfeited - P20,000
• The gross profit is 20% for the last five yeârs.
The company also provided information:
o Goods out on consignment, at cost - P30,000
o Goods purchased still in transit, FOB destination - P25,000
o Cost of undamaged goods at selling price - P100,000
How much is the estimated cost of goods sold?
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