YNA Inc. operates a jewelry store. On the morning of February 14, an inventory was conducted after discovering that one of the trusted employees committed theft and ran away with pieces of jewelry. The inventory disclosed goods on hand costing P5,500,000. Additional information from the books includes the following: Inventory on hand, February 1 – P6,750,000; Purchases made from February 1 to 13 – P7,000,000 and Sales – P10,500,000. Records show that sales are made at 40% above cost. What is the amount of loss from theft?

YNA Inc. operates a jewelry store. On the morning of February 14, an inventory was conducted after discovering that one of the trusted employees committed theft and ran away with pieces of jewelry. The inventory disclosed goods on hand costing P5,500,000. Additional information from the books includes the following: Inventory on hand, February 1 – P6,750,000; Purchases made from February 1 to 13 – P7,000,000 and Sales – P10,500,000. Records show that sales are made at 40% above cost. What is the amount of loss from theft?

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter11: Current Liabilities And Payroll

Section: Chapter Questions

Problem 3CPP

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YNA Inc. operates a jewelry store. On the morning of February 14, an inventory was conducted after discovering that one of the trusted employees committed theft and ran away with pieces of jewelry. The inventory disclosed goods on hand costing P5,500,000. Additional information from the books includes the following: Inventory on hand, February 1- P6,750,000; Purchases made from February 1 to 13 - P7,000,000 and Sales - P10,500,000. Records show that sales are made at 40% above cost. What is the amount of loss from theft?
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April showers sells goods on credit to most of it's customers. In order to control it's debtor collection system the company maintains a sale ledger control account. In preparing the accounts for the year to 31 October 2019 the accountant discovers that the total of all the personal accounts in the sales ledger account to sh.12,802 whereas the balance on the sales ledger control account is sh.12,550 Upon investigating the matter, the following errors were discovered. - sales for the week ending 27 March 2019 amounting to sh 850 had been ommited from the control account. - A debtor account balance of sh 300 had not been included in the list of balance . - Cash received of sh. 750 had been entered in a personal account as sh. 570. - Discounts allowed totalling sh.100 had not been entered in the control account. - A personal account balance had been undercast by sh.200. - A contra item of sh.400 with the purchase ledger had not been entered in the control account. - A bad debt of…
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