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A fire destroyed most of the inventory in Mick's warehouse on September 1. After the fire, Mick's accounting records showed the following: Inventory, January 1 $55,000 Purchases, January 1 through September 1 $310,000 Sales, January 1 through September 1 Inventory not damaged by fire Gross profit percentage on sales What amount of inventory was lost in the fire? a. $259,000 b. $61,000 c. $106,000 d. $55,000 $370,000 $45,000 30%

A fire destroyed most of the inventory in Mick's warehouse on September 1. After the fire, Mick's accounting records showed the following: Inventory, January 1 $55,000 Purchases, January 1 through September 1 $310,000 Sales, January 1 through September 1 Inventory not damaged by fire Gross profit percentage on sales What amount of inventory was lost in the fire? a. $259,000 b. $61,000 c. $106,000 d. $55,000 $370,000 $45,000 30%

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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What amount of inventory was lost in the fire?

A fire destroyed most of the inventory in Mick's warehouse on September 1. After the fire, Mick's accounting records showed the following: Inventory, January 1 $55,000 Purchases, January 1 through September 1 $310,000 Sales, January 1 through September 1 Inventory not damaged by fire Gross profit percentage on sales What amount of inventory was lost in the fire? a. $259,000 b. $61,000 c. $106,000 d. $55,000 $370,000 $45,000 30%
Transcribed Image Text:A fire destroyed most of the inventory in Mick's warehouse on September 1. After the fire, Mick's accounting records showed the following: Inventory, January 1 $55,000 Purchases, January 1 through September 1 $310,000 Sales, January 1 through September 1 Inventory not damaged by fire Gross profit percentage on sales What amount of inventory was lost in the fire? a. $259,000 b. $61,000 c. $106,000 d. $55,000 $370,000 $45,000 30%
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