A retail store suffered a fire on November 10,destroying its merchandise inventory. The followingdata were obtained from accounting records:Beginning Inventory (Jan. 1): $180,000• Net Purchases (Jan. 1 - Nov. 10): $1,500,000• Net Sales (Jan. 1 - Nov. 10): $2,700,000• Estimated Gross Profit Rate: 40%

Given:Beginning Inventory = $180,000Net Purchases = $1,500,000Net Sales = $2,700,000Estimated Gross…

Answered: A retail store suffered a fire on…

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter20: Accounting For Inventory

Section: Chapter Questions

Problem 1CP

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Confucius Bookstore’s inventory is destroyed by a fire on September 5. The following data for the current year are available from the accounting records. Estimate the cost of the inventory destroyed. Beginning inventory, Jan. 1 . $190,000 Jan. 1 through Sept. 5 purchases (net) $352,000 Jan. 1 through Sept. 5 sales (net) . $685,000 Current year’s estimated gross profit rate . 44%
On February 7 of the following year,the merchandise inventory was destroyed by fire based on the following data obtained from the accounting records,estimate the cost of the merchandise destroyed: Jan 1 merchandise inventory 140,600 Jan 1-Feb 7 purchase (net) 38,000 Jan 1-Feb sales (net)........68,000 Estimated gross profit rate ....40%
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On January 1, a store had inventory of $48,000. January purchases were $46,000 and January sales were $95,000. On February 1 a fire destroyed most of the inventory. The rate of gross profit was 20% of sales. Merchandise with a selling price of $5,000 remained undamaged after the fire. Compute the amount of the fire loss, assuming the store had no insurance coverage. Label all figures.
Marigold Corporation's April 30 inventory was destroyed by fire. January 1 inventory was $164,900, and purchases for January through April totaled $492,600. Sales revenue for the same period was $686,300. Marigold's normal gross profit percentage is 25% on sales. Using the gross profit method, estimate Marigold's April 30 inventory that was destroyed by fire. Estimated ending inventory destroyed in fire
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For the period ending October 6, compute the following:
On January 1, a store had inventory of P 48,000. January purchases were P 46,000 and January sales were P 90,000. On February 1 a fire destroyed most of the inventory. The rate of gross profit was 25% of cost. Merchandise with a selling price of P 5,000 remained undamaged after the fire. Compute the amount of the fire loss, assuming the store had no insurance coverage
Blue Corporation's April 30 inventory was destroyed by fire. January 1 inventory was $155,000, and purchases for January through April totaled $467,300. Sales revenue for the same period was $684,500. Blue's normal gross profit percentage is 25% on sales. Using the gross profit method, estimate Blue's April 30 inventory that was destroyed by fire. Estimated ending inventory destroyed in fire $
On April 15 of the current year, a fire destroyed the entire uninsured inventory of a retail store. The following data are available: Sales, January 1 through April 15 $300,000 Inventory, January 1 50,000 Purchases, January 1 through April 15 250,000 Markup on cost 25% The amount of the inventory loss is estimated to be $
On April 15 of the current year, a fire destroyed the entire uninsured inventory of a retail store. The following data are available: Sales, January 1 through April 15 $600,000 Inventory, January 1 100,000 Purchases, January 1 through April 15 500,000 Markup on cost 25% The amount of the inventory loss is estimated to be O a. $120,000. O b. $100,000. O C. $150,000. O d. $60,000. Quitar mi elección ere to search 近

On January 1 a store had inventory of P55,000. January purchases were P46,000 and January sales were P105,000. On February 1 a fire destroyed most of the inventory. The rate of gross profit was 25% of cost. Merchandise with a selling price of P7,500 remained undamaged after the fire. Compute the amount of the fire loss, assuming the store had no insurance coverage.

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