The Thomas Corporation was organized on Jan. 1, 2020. On Dec. 31, 2021, the corporation lost most of its inventory in a warehouse fire
The Thomas Corporation was organized on Jan. 1, 2020. On Dec. 31, 2021, the corporation lost most of its inventory in a warehouse fire before the year-end count of inventory was to take place. just from the records disclosed the following: Data 2020 2021 Goods available for sale Sales 4,069,400 4,157,000 3,940,000 4,180,000 Sales returns and allowances 80,000 Gross profit rate 100,000 ? 21% On Jan. 1, 2021, the Corporation's pricing policy was changed so that the gross profit rate would be three percentage points higher than the one earned in 2020. Salvaged undamaged merchandise was marked to sell at P120,000 while damaged merchandise was marked to sell at P80,000 had an estimated realizable value of P18,000. Required: Compute inventory fire loss.
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1 2 C 2021 Gross Profit Rate 21 2400 Sales P 3940000 P 4180000 6 P 80000 P 100000 ... View full answer
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Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
3rd edition
1119372933, 978-1119372936
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