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On June 19, 2021, a fire destroyed the entire uninsured merchandise inventory of the Allen Merchandising Company. The following data are available: Inventory (Jan. 1) P8,000; Purchases (Jan 1 to June 19) P56,000; Sales (Jan 1 to June 19) P76,000; and gross profit rate of 40% on sales.
Problem 1: What is the gross profit?
Problem 2: How much is the estimated cost of sales?
Problem 3: What is the approximate inventory loss as a result of the fire?
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