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Posted on Jul 18, 2024

On the eve of June 15, 2021, a fire destroyed the warehouse where Mobile Legends Company store their merchandise. The merchandise inventory was not covered

On the eve of June 15, 2021, a fire destroyed the warehouse where Mobile Legends Company store their merchandise. The merchandise inventory was not covered by insurance. The following information were given:

Inventory, January 1 P250,000

Purchases, January 1 June 15 P2,300,000

Sales, January 1 June 15 P2,000,000

Gross profit rate 25%

1. How much is Cost of Sales?

2. How much is Gross Profit?

3. How much is the Inventory Loss?

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