PROBLEM 7: On May 21, 2018, a fire destroyed the entire merchandise inventory on hand of Natural Corporation. The following information is available: Sales, January 1 through May 2, 2018 P380,000 Sales return (covering the same period) 20,000 Sales allowance (covering the same period) 10,000 Sales discounts (covering the same period) 25,000 Inventory, January 1, 2018 80,000 Purchases, January 1 through May 2, 2018 (including P40,000 of goods in transit on May 2, 2018 Shipped FOB shipping point) 400,000 Purchase discounts 40,000 Purchase returns and allowances 30,000 Mark-up percentage on cost 20% How much should be recognized as inventory loss? O 42.000 O 30,000 82.000 70,000