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Luna Manufacturing began operations 5 years ago. On August 13, 2017, a fire broke out in the warehouse destroying all inventory and many accounting records
Luna Manufacturing began operations 5 years ago. On August 13, 2017, a fire broke out in the warehouse destroying all inventory and many accounting records relating to the inventory. The information available is presented below. All sales and purchases are on account. January 1, August 13, 2017 2017 Inventory P143,850 Accounts Receivable 130,590 P128,890 Accounts Payable 88,140 122,850 Collections on accounts rec., Jan. 1- Aug. 13 753,800 Payments to suppliers, Jan. 1- Aug. 13 487,500 Goods out on consignment at Aug. 13, at cost 52,900 Summary on previous years' sales: 2014 2015 2016 Sales P626,000 P705,000 P680,000 Gross Profit 187,800 183,300 231,200 GPR 30% 26% 34% Determine the inventory loss suffered as a result of the fire. a. P139,590 C. P86,690 b. P102,560 d. P86,310
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