You took a physical inventory for your sole proprietorship at the close of business on July 31, 2019. The inventory totaled P205,000. You were verifying the accuracy of the inventory records at June 30, 2019, therefore you must estimate an inventory amount on that date. You find that during the period July 1 through July 31, 2019, sales were P705,000; sales returns, P18,000; gross purchases, P650,000; purchase returns, P12,000; freight-in, P6,000. What is the estimated cost of inventory on June 30, 2019 assuming that goods are sold at 20% above cost? _________________
You took a physical inventory for your sole proprietorship at the close of business on July 31, 2019. The inventory totaled P205,000. You were verifying the accuracy of the inventory records at June 30, 2019, therefore you must estimate an inventory amount on that date. You find that during the period July 1 through July 31, 2019, sales were P705,000; sales returns, P18,000; gross purchases, P650,000; purchase returns, P12,000; freight-in, P6,000. What is the estimated cost of inventory on June 30, 2019 assuming that goods are sold at 20% above cost? _________________
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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You took a physical inventory for your sole proprietorship at the close of business on July 31, 2019.
The inventory totaled P205,000. You were verifying the accuracy of the inventory records at June 30, 2019, therefore you
must estimate an inventory amount on that date. You find that during the period July 1 through July 31, 2019, sales were
P705,000; sales returns, P18,000; gross purchases, P650,000; purchase returns, P12,000; freight-in, P6,000.
What is the estimated cost of inventory on June 30, 2019 assuming that goods are sold at 20% above cost? _________________
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