On October 15, 2020, a fire destroyed all the stock of equipment of Eyeliner Equipment Center in its rented stockroom. The records of the firm show the following information:
2019 2018 2017 2016
Sales P 925,000 P 880,000 P 790,000 P 710,000
Cost of Sales 758,500 739,200 679,400 624,800
Gross profit P 166,500 P 140,800 P 110,600 P 85,200
Inventory, Jan 1, 2020 P 130,500
Sales Jan 1 to Oct 15, 2020 960,000
Sales returns and allowances 15,000
Purchases, Jan 1 to Oct 15, 2020 890,000
Purchase returns and allowances 12,000
Cost of stock in display room, not destroyed 85,000
How much is the estimated cost of merchandise lost in the fire of October 15, 2020?
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