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Problem 1: A flood destroyed Good Company's inventory on September 30. On January 1, the inventory had a cost of P2,200,000. During the period January 1 to September 30, the entity had purchases of P13,000,000; purchases returns of P1,000,000. The company's sales amounted to P14,560,000; sales discount of P2,000,000. A physical inventory disclosed usable damaged goods at the date of which can be sold at P500,000. The markup on cost is 30%. What is the estimated amount of inventory destroyed by flood? Group of answer choices
Option 1: 3,508,000
Option 2: 2,500,000
Option 3: 3,500,000
Option 4: 3,000,000
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