AUDITING

\fOn May 2, 2019, a fire destroyed the entire merchandise inventory on hand of COVID Corporation. The following information is available: Sales, January 1 through May 2, 2019 380,000 Sales Return (covering the same period) 20,000 Sales Allowance (covering same period) 10,000 Sales Discount (covering same period) 25,000 nventory, January 1, 2019 80,000 Purchases, January through May 2, 2019 (including P40,000 of goods in transit on May 2, 2019 shipped FOB shipping point) 400,000 Purchase discounts 40,000 Purchase returns and allowances 30,000 Mark-up Percentage on Cost 20% Question 1: What is the estimated inventory on May 2, 2019 immediately prior to the fire? O 110,000 O 122,000 O 70,000 O 82,000 Question 11 Question 2: How much should be recognized as inventory loss? 70,000 O 82,000 O 30,000 O 42,000