How much should be recognized as Inventory loss? ----Don't forget to put "0" Example: (P10,000) On May 21, 2014, a fire destroyed the entire merchandise inventory on hand of Natural Corporation. The following information is available: P 380,000.00 20,000.00 Sales, January 1 through May 2, 2014 Sales return (covering the same period) Sales allowance (covering the same period) Sales discount (covering the same period) 10,000.00 25,000.00 80,000.00 Inventory, January 1, 2014 Purchases, January 1 through May 2, 2014 (including 40,000 of goods in transit on May 2, 2014 shipped FOB shipping point) 400,000.00 Purchase discounts 40,000.00 Purchase returns and allowances Mark-up percentage on cost 30,000.00 20% Your