On August 31, 2018, a fire destroyed totally the rented bodega or stockroom of the Company. The
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Question:
On August 31, 2018, a fire destroyed totally the rented "bodega" or stockroom of the Company. The following are some of the data of the company:
Merchandise inventory, December 31, 2017 P110,000
For the period Jan.1 to Aug. 31, 2018:
Purchases 560,500
Freight-in 5,600
Purchase returns 10,200
Sales 695,000
Sales returns and allowances 7,500
Using a gross profit rate of 20%, the cost of the merchandise lost in the fire was:
A. P90,700
B. P115,900
C. P88,400
D. P63,200
Posted Date: