Question: Intermediate Accounting Inventories - Show Complete Solution and Explain: Question 32 On December 31, 2021, a physical inventory was conducted. As a result, the ending

Intermediate Accounting Inventories - Show Complete Solution and Explain:

Question 32

On December 31, 2021, a physical inventory was conducted. As a result, the ending inventory was P25,294,511. Blu Company suspects that some inventory was stolen by employees. The following information was collected to estimate the cost of missing inventory:

Inventory, 12.31.20 P11,278,010 Purchases during 2021 24,786,501 Cash sales during 2021 13,500,000 Shipment received on 12.26.21, included in physical inventory, 180,000 but not recorded as purchases Deposits made with suppliers, entered as purchases. 250,000 Goods were not received in 2021 Collections on accounts receivable, 2021 4,050,382 Accounts receivable, 1.1.21 5,795,875 Accounts receivable 12.31.21 2,745,493 Gross profit percentage on sales 40%

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