Imventories

On November 30, 2019, a big flood 2 points caused severe damage to the warehouse of Ulysses Company. The Company suffered a big loss on its merchandise inventory. * As at 11/30/2019 2018 Merchandise inventory, beginning 400,000.00 Purchases 2,380,000.00 2,240,000.00 Purchases returns 60,000.00 40,000.00 Sales 3,120,000,00 2, 400,000.00 Selling expenses 120,000.00 100,000.00 Depreciation charges 40, 000.00 36,000.00 At the beginning of 2019, the company changed its policy on the selling prices of merchandise in order to produce a gross profit rate of 5% higher than the gross profit rate in 2018. Undamaged merchandise marked to sell at P100,000 were salvaged. Damaged merchandise marked to sell at P30, 000 had an estimated realizable value of P8,000. What is the estimated inventory cost lost from flood on November 30, 2019