22. Gage’s accounting records included the following information: Inventory, 01-01-15                                                                                                             $211,000 Purchases during 2015                                                                                                        $805,000 Purchase returns during 2015                                                                                                 $4,000 Freight-out on 2015 sales                                                                                                      $10,000 Sales during 2015                                                                                                              $1,662,000 Sales returns during 2015                                                                                                      $60,000   Gage completed a physical inventory on 12-31-15 and calculated an ending inventory of $100,000, at retail selling price. In recent years, Gage's gross profit equaled 42% of Gage’s selling price. Gage suspects some inventory may have been shoplifted. Prepare the entry, if necessary, to reflect the estimated loss from any shoplifted items.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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22.

Gage’s accounting records included the following information:

Inventory, 01-01-15                                                                                                             $211,000

Purchases during 2015                                                                                                        $805,000

Purchase returns during 2015                                                                                                 $4,000

Freight-out on 2015 sales                                                                                                      $10,000

Sales during 2015                                                                                                              $1,662,000

Sales returns during 2015                                                                                                      $60,000

 

Gage completed a physical inventory on 12-31-15 and calculated an ending inventory of $100,000, at retail selling price. In recent years, Gage's gross profit equaled 42% of Gage’s selling price. Gage suspects some inventory may have been shoplifted. Prepare the entry, if necessary, to reflect the estimated loss from any shoplifted items.

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