Problem 13-10 (AICPA Adapted) On September 30, 2021, a fire destroyed most of the merchandise inventory of Paragon 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 P25,000 and undamaged goods that normally sell for P60,000. Inventory-January 1, 2021 Net purchases, January 1 through September 30, 2021 Net sales, January 1 through September 30, 2021 660,000 4,240,000 5,600,000 2020 2019 2018 Net sales Cost of goods sold 5,000,000 3,840,000 3,000,000 2,200,000 1,000,000 710,000 What amount of fire loss shoul be recognized on September 30, 2021? a. 700,000 b. 615,000 c. 630,000 d. 580,000

Problem 13-10 (AICPA Adapted) On September 30, 2021, a fire destroyed most of the merchandise inventory of Paragon 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 P25,000 and undamaged goods that normally sell for P60,000. Inventory-January 1, 2021 Net purchases, January 1 through September 30, 2021 Net sales, January 1 through September 30, 2021 660,000 4,240,000 5,600,000 2020 2019 2018 Net sales Cost of goods sold 5,000,000 3,840,000 3,000,000 2,200,000 1,000,000 710,000 What amount of fire loss shoul be recognized on September 30, 2021? a. 700,000 b. 615,000 c. 630,000 d. 580,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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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On September 30, 2020, a fire destroyed̟most of the 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 P25,000 and undamaged What is the amount of fire loss to be recognized on September Problem 13-8 (AICPA Adapted) merchandise inventory of Paragon Company. an estimated net realizable value of P26,000 and undamacd goods that normally sell for P60,000. Inventory -January 1, 2020 Net purchases, January 1 through September 30, 2020 Net sales, January 1 through September 30, 2020 660,000 4,240,000 5,600,000 2019 2018 2017 Net sales Cost of goods sold 5,000,000 3,840,000 3,000,000 2,200,000 1,000,000 710,000 What is the amount of fire loss to be recognized on 20, 2020? a. 700,000 b. 615,000 с. 630,000 d. 580,000
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