n September 30, 2020, a fire destroyed most of merchandise inventory of Karrie Company. All goods were completely destroyed except for partially damaged goods that normally sell for P100,000 and that had an estimated net realizable value of 45,000 and undamaged goods that normally sell for 50,000. Inventory – January 1, 2020 960,000 Net purchases, January 1 through September 30, 2020 4,230,000 Net sales, January 1 through September 30, 2020 5,500,000 2019 2018 2017 Net sales 5,000,000 3,000,000 1,000,000 Cost of goods sold 3,840,000 2,200,000 710,000 8. What is the amount of fire loss to be recognized on September 30, 2020? a. 3,757,500 b. 982,500 c. 1,027,500 d. 1,020,000
n September 30, 2020, a fire destroyed most of merchandise inventory of Karrie Company. All goods were completely destroyed except for partially damaged goods that normally sell for P100,000 and that had an estimated net realizable value of 45,000 and undamaged goods that normally sell for 50,000. Inventory – January 1, 2020 960,000 Net purchases, January 1 through September 30, 2020 4,230,000 Net sales, January 1 through September 30, 2020 5,500,000 2019 2018 2017 Net sales 5,000,000 3,000,000 1,000,000 Cost of goods sold 3,840,000 2,200,000 710,000 8. What is the amount of fire loss to be recognized on September 30, 2020? a. 3,757,500 b. 982,500 c. 1,027,500 d. 1,020,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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On September 30, 2020, a fire destroyed most of merchandise inventory of Karrie Company. All goods were completely destroyed except for partially damaged goods that normally sell for P100,000 and that had an estimated net realizable value of 45,000 and undamaged goods that normally sell for 50,000.
Inventory – January 1, 2020 960,000
Net purchases, January 1 through September 30, 2020 4,230,000
Net sales, January 1 through September 30, 2020 5,500,000
2019 2018 2017
Net sales 5,000,000 3,000,000 1,000,000
Cost of goods sold 3,840,000 2,200,000 710,000
8. What is the amount of fire loss to be recognized on September 30, 2020?
a. 3,757,500
b. 982,500
c. 1,027,500
d. 1,020,000
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