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Late on the night of August 30, 2021, an arsonist destroyed the NCT Inc's warehouse which was full of inventory. The accounting records were stored in another facility and not destroyed in the fire.
The company is in the process of filing a claim with its insurance company for the inventory loss due to the fire.
Beginning inventory P350,500Purchases through August 30, 2021 470,250Net sales revenue through August 30, 2021 745,200
The gross profit percent has historically been 40% of net sales revenue. Problem 1: Estimate the value of the inventory destroyed in the fire using the gross profit method.
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