. Northstar Sales Corp. was organized on January 1, 2001. On December 31, 2002, the company lost most of its inventory in a warehouse fire just before the year-end count of inventory was to take place. Data from the records disclosed the following: 2001 2002 Inventory, January 1 P 0 P173,120 Purchases during year 860,000 692,000 Purchase returns and allowances during year 46,120 64,600 Sales during year 788,000 836,000 On January, 2002, Northstar's pricing policy was changed so that the gross profit rate ( based on sales ) would be 3 percentage points higher than the one earned in 2001. Salvaged undamaged merchandise was marked to sell at P24,000, while damaged merchandise marked to sell at P16,000 had an estimated net realizable value of P3,600 How much is the inventory loss due to the fire ? a. 147,720 b.132,820 c.129,260 d.124,920
3. Northstar Sales Corp. was organized on January 1, 2001. On December 31, 2002, the company lost most of its inventory in a warehouse fire just before the year-end count of inventory was to take place. Data from the records disclosed the following:
2001 2002
Inventory, January 1 P 0 P173,120
Purchases during year 860,000 692,000
Purchase returns and allowances
during year 46,120 64,600
Sales during year 788,000 836,000
- On January, 2002, Northstar's pricing policy was changed so that the gross profit rate ( based on sales ) would be 3 percentage points higher than the one earned in 2001.
- Salvaged undamaged merchandise was marked to sell at P24,000, while damaged merchandise marked to sell at P16,000 had an estimated net realizable value of P3,600
How much is the inventory loss due to the fire ?
a. 147,720
b.132,820
c.129,260
d.124,920
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