The following information is available from Uranus's records for the nine months ended September 30, 2021. Inventory, January 1, 2020- P 300,000; Net Purchases- P 4,200,000; Net sales- P 3,540,000. A physical inventory disclosed usable damaged goods which Uranus estimates can be sold to a jobber for P 50,000 2. Using the gross profit method, what is the estimated cost of merchandise lost by the fire?

The following information is available from Uranus's records for the nine months ended September 30, 2021. Inventory, January 1, 2020- P 300,000; Net Purchases- P 4,200,000; Net sales- P 3,540,000. A physical inventory disclosed usable damaged goods which Uranus estimates can be sold to a jobber for P 50,000 2. Using the gross profit method, what is the estimated cost of merchandise lost by the fire?

Name: PROBLEM 2. On September 30, 2021, a fire atUranus Company's only ware
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Description: PROBLEM 2. On September 30, 2021, a fire atUranus Company's only warehouse caused severedamage to its entire inventory. Based on recenthistory, Uranus has a gross profit of 25% on sales.The following information is available fromUranus's records for

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 3RE: Reid Company uses the periodic inventory system. On January 1, it had an inventory balance of...

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On June 30, 2021, a fire at Norianna Company's only warehouse caused severe damage to its inventory. Based on recent history, Norianna has a gross profit of 25% on cost. The following information is available from the records for the six months ended June 30, 2021: Inventory - January 1 Net purchases 4,000,000 18,000,000 Net sales 20,000,000 A physical inventory disclosed undamaged goods with selling price of P1,000,000. On June 30, 2021, unsold goods on consignment with selling price of P1,500,000 are in the hands of the consignee. What is the estimated cost of inventory destroyed by fire?
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