Reference no: EM133019030
Question - On September 1, 20x1, a fire destroyed the warehouse of Refresh Co. All of its inventories were contained in that warehouse. Available records from the system showed the following information.
Inventory, January 1 29,000
Accounts payable, January 1 12,000
Accounts payable, August 31 6,000
Payments to suppliers 100,000
Freight in 10,000
Purchase returns and discounts 5,000
Sales from January to August 31 150,000
Sales returns 10,000
Sales discounts 4,000
Gross profit rate based on sales 20%
Goods purchased in transit FOB-SP on September 1 amounted to P4,000 while goods out on consignment were P2,400. Damaged materials can be solved at salvaged value of P1,000.
Required -
Compute the amount of net purchases?
Compute the cost of goods sold?
Compute the inventory loss due to the flood?