AUDITING+ASSURANCE 12MONTH ACCESS CARD
17th Edition
ISBN: 9780135635131
Author: ARENS
Publisher: WILEY
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Chapter 17, Problem 22.3MCQ
To determine
Indicate the acceptable scenario.
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LUKE CO's warehouse was severely damaged by flashflood on June 15, 2023. In the process of gathering the available information to file the insurance claim, LUKE was able to summarize the following:
-The last physical inventory was taken on December 31, 2022 and actual count report showed P220,000.
-Accounts payable amounted to P109,000 on January 1, 2023 and P126,000 at the time of the flashflood.
-Tracing of bank statements showed that payments made to vendors and collections from customers aggregated P641,000 and P875,000, respectively, from January 1, 2023 up to the date of the flashflood.
-All sales are on account and outstanding balance of accounts receivables amouted to P135,700 as at January 1, 2023, and P107,000 on June 15, 2023.
-All inventory items are sold approximately 30% in excess of cost.
-As at June 15, 2023, the cost of inventories that were salvaged and not destroyed amounted to P144,000.
How much is the amount of inventory loss as a result of the flashflood?…
What was the investor's rate of return on these financial accounting question?
SUBJECT: GENERAL ACCOUNTING
Chapter 17 Solutions
AUDITING+ASSURANCE 12MONTH ACCESS CARD
Ch. 17 - Prob. 1RQCh. 17 - Prob. 2RQCh. 17 - Prob. 3RQCh. 17 - Prob. 4RQCh. 17 - Prob. 5RQCh. 17 - Prob. 6RQCh. 17 - Prob. 7RQCh. 17 - Prob. 8RQCh. 17 - Prob. 9RQCh. 17 - Prob. 10RQ
Ch. 17 - Prob. 11RQCh. 17 - Prob. 12RQCh. 17 - Prob. 13RQCh. 17 - Prob. 14RQCh. 17 - Prob. 15RQCh. 17 - Prob. 16RQCh. 17 - Prob. 17RQCh. 17 - Prob. 18RQCh. 17 - Prob. 19RQCh. 17 - Prob. 20RQCh. 17 - Prob. 21.1MCQCh. 17 - Prob. 21.2MCQCh. 17 - Prob. 21.3MCQCh. 17 - Prob. 22.1MCQCh. 17 - Prob. 22.2MCQCh. 17 - Prob. 22.3MCQCh. 17 - Prob. 23.1MCQCh. 17 - Prob. 23.2MCQCh. 17 - Prob. 23.3MCQCh. 17 - Prob. 24.1MCQCh. 17 - Prob. 24.2MCQCh. 17 - Prob. 24.3MCQCh. 17 - Prob. 25DQPCh. 17 - Prob. 26DQPCh. 17 - Prob. 27DQPCh. 17 - Prob. 28DQPCh. 17 - Prob. 29DQPCh. 17 - Prob. 30DQPCh. 17 - Prob. 31DQPCh. 17 - Prob. 32DQPCh. 17 - Prob. 34DQPCh. 17 - Prob. 35DQP
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- At year-end, Simple has cash of $12,000, current accounts receivable of $60,000, merchandise inventory of $37,200, and prepaid expenses totaling $5,200. Liabilities of $24,000 must be paid next year. Assume accounts receivable had a beginning balance of $20,000 and net credit sales for the current year totaled $2,400,000. How many days did it take Simple to collect its average level of receivables? (Assume 365 days/year.)arrow_forwardPerry Industries is preparing its direct labor budget for the next two months. Each unit of output requires 0.85 direct labor hours. The direct labor rate is $12 per direct labor hour. The production budget calls for producing 7,200 units in June and 7,000 units in July. The company guarantees its direct labor employees a 40-hour paid work week, and with the current workforce, this means they are committed to paying for at least 5,900 labor hours per month, even if there isn't enough work to occupy all that time. What would be the total combined direct labor cost for the two months?arrow_forwardPlease provide the correct answer to this financial accounting problem using valid calculations.arrow_forward
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