If a company's records are destroyed by fire, there is no way to determine the amount of the inventory that was destroyed.

Question

Quizplus · Accepted Answer

While the physical inventory may be destroyed, there are still other ways to determine the amount of the inventory that was destroyed. This includes past purchase orders, sales records, and supplier invoices. It may take some effort to piece together the information, but it is possible to make an estimate of the lost inventory.

If a Company's Records Are Destroyed by Fire, There Is