PROBLEM 21: A physical inventory taken on December 31, 2021 resulted in an ending inventory of P1,440,000. San Salvador Company suspects some inventory may have been taken by employees. To estimate...


Required: At December 31, 2021, what is the estimated cost of missing inventory?


PROBLEM 21: A physical inventory taken on December 31, 2021 resulted in an ending inventory<br>of P1,440,000. San Salvador Company suspects some inventory may have been taken by<br>employees. To estimate the cost of missing inventory, the following were gathered:<br>P 1,280,000<br>Inventory, December 31, 2020<br>Purchases during 2021<br>Cash sales during 2021<br>Shipment received on December 26,<br>2021, included in physical inventory but<br>not recorded as purchases<br>Deposits made with suppliers, entered as<br>purchases. Goods were not received in<br>2021<br>5,640,000<br>1,400,000<br>40,000<br>Collections on accounts receivable, 2021<br>Accounts receivable, January 1, 2021<br>Accounts receivable, December 31, 2021<br>Gross profit percentage on sales<br>80,000<br>7,200,000<br>1,000,000<br>1,200,000<br>40%<br>27. At December 31, 2021, what is the estimated cost of missing inventory?<br>

Extracted text: PROBLEM 21: A physical inventory taken on December 31, 2021 resulted in an ending inventory of P1,440,000. San Salvador Company suspects some inventory may have been taken by employees. To estimate the cost of missing inventory, the following were gathered: P 1,280,000 Inventory, December 31, 2020 Purchases during 2021 Cash sales during 2021 Shipment received on December 26, 2021, included in physical inventory but not recorded as purchases Deposits made with suppliers, entered as purchases. Goods were not received in 2021 5,640,000 1,400,000 40,000 Collections on accounts receivable, 2021 Accounts receivable, January 1, 2021 Accounts receivable, December 31, 2021 Gross profit percentage on sales 80,000 7,200,000 1,000,000 1,200,000 40% 27. At December 31, 2021, what is the estimated cost of missing inventory?

Jun 02, 2022
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