Question
IGNORE PESO SIGN IN ALL YOUR ANSWERS. The following information appears in Olivia Company's records for the year ended December 31, 2011: Inventory, January 1
IGNORE PESO SIGN IN ALL YOUR ANSWERS.
The following information appears in Olivia Company's records for the year ended December 31, 2011:
Inventory, January 1 - P650,000 Purchases - P2,300,000 Purchase returns - P80,000 Freight in - P60,000 Sales - P3,400,000 Sales discounts - P20,000 Sales returns - P30,000
On December 31, 2011, a physical inventory revealed that the ending inventory was only P420,000. The gross profit on sales has remained constant at 30% in recent years. Olivia suspects that some inventory may have been pilfered by one of the entity's employees.
On December 31, 2011, what is the estimated cost of missing inventory?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started