How much is the estimated loss from inventory theft

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Problem - In its second year of operation, Painter Inc. noticed possible theft of its inventories. It gathered the following information from its operations:

 

1st year

2nd year

Purchases

P1,200,000

P1,500,000

Freight-in

100,000

120,000

Purchase returns and allowance

50,000

60,000

Purchase discount

40,000

70,000

Sales

1,300,000

1800,000

Sales returns and allowance

100,000

250,000

Sales discount

120,000

150,000

Cost of sales

900,000

?

If the physical ending inventory were valued at P325,000, how much is the estimated loss from inventory theft?

Reference no: EM132840427

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