The following information is available for October for Sheridan Company. (Round answers to 0 decimal places, e.g. 5,275.)Beginning Inventory$330000Net purchases1060000Net sales2120000Percentage markup on66.67%costA fire destroyed Sheridan's October 31 inventory, leaving undamaged inventory with a cost of $20500. Using the gross profit method,the estimated ending inventory destroyed by fire isO $730000.O $97500.O$565333.$544833.

Calculation of Cost of Goods Sold= [Net Sales / 166.67] x 100= [2,120,000 / 166.67] x 100=…

Answered: A fire destroyed Sheridan's October 31…

A fire destroyed Sheridan's October 31 inventory, leaving undamaged inventory with a cost of $20500. Using the gross profit method, the estimated ending inventory destroyed by fire is

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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Concept explainers

Property Insurance

Property insurance protects property from unforeseeable loss or damage and covers property owners' liability. Property insurance provides financial compensation to the property owner or renter in the event of damage or theft, as well as to someone other than the owner or renter if that person is injured on the property. Property insurance covers all risks of damage caused by theft, fire, flood, cyclones, lighting, and natural calamities, among other things. The primary goal of property insurance is to require the property owner to cover the loss. A monthly premium is paid to the insurance company, and in exchange, the insurance company pays for damage based on the agreement stated in the policy. Property insurance protects assets such as a vehicle, auto, car, rental home, house, and valuable property.

Question

The following information is available for October for Sheridan Company. (Round answers to 0 decimal places, e.g. 5,275.)
Beginning Inventory
$330000
Net purchases
1060000
Net sales
2120000
Percentage markup on
66.67%
cost
A fire destroyed Sheridan's October 31 inventory, leaving undamaged inventory with a cost of $20500. Using the gross profit method,
the estimated ending inventory destroyed by fire is
O $730000.
O $97500.
O$565333.
$544833.

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