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On December 31,2011, the warehouse of LSL was flooded due to a storm. As a result, the company failed to determine

the ending balance of its Merchandise Inventory. As the company's accountant, you are required to examine the records of the company to determine the ending balance of its Merchandise Inventory. After the flood, the company was able to sell the undamaged merchandise inventory for P150,000 with a normal gross profit rate based on cost of 50%. The following data are available for 2010:

           Gross Sales                                                     P1,750,000

           Merchandise Inventory, January 1,2010              100,000

           Freight In                                                         300,000

           Gross Purchases                                             1,200,000

           Sales Return                                                    250,000

           Purchase discount                                            400,000

           Purchase return and allowance                         50,000

Required: Determine the following:

Net sales before the sale of undamaged inventory after the fire

Total cost of goods available for sale

Gross profit or Gross Income before the sale of undamaged inventory after the fire

Cost of Sales before the sale of undamaged inventory after the fire

Merchandise Inventory on December 31,2011 before the fire

Loss on inventory write down as a result of the fire

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