Kindly help me Accounting question A retail store's inventory was damaged by flooding onNovember 15. The following information is available:January 1 Merchandise inventory......$375,000 January 1-November 15:⚫ Net purchases $2,250,000⚫ Net sales..........$4,200,000⚫ Estimated gross profit rate....48%Calculate the estimated cost of the merchandise damaged.

Step 1: Definition of Gross Profit MethodThe gross profit method estimates the value of damaged or…

Answered: A retail store's inventory was damaged…

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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Gross Profit Method The merchandise inventory was destroyed by fire on December 13. The following data were obtained from the accounting records: Jan. 1 Merchandise inventory $350,000 Jan. 1-Dec. 31 Purchases (net) 2,950,000 Sales (net) 4.440,000 Estimated gross profit rate 35% a. Estimate the cost of the merchandise destroyed. Cost of the Merchandise Destroyed $ $ b. Briefly describe the situations in which the gross profit method is useful. 1. The gross profit method is useful for estimating inventories for monthly or quarterly financial statements. 2. It is useful in estimating the cost of merchandise destroyed by fire or other disasters. 3. It is useful in reducing the carrying cost of inventory. 4. It is useful in achieving a higher net income.
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During the current year, merchandise is sold for $237,500 cash and $625,000 on account. The cost of the goods sold is $422,300. What is the amount of the gross profit? a.$1,284,800 b.$442,000 c.$34,800 d.$440,200
During the current year, merchandise is sold for $$59,180 cash and for $86,380 on account. The cost of the goods sold is $94,610. What is the amount of the gross profit? Previous Next Email Instruct %24
An inventory taken the morning after a large theft discloses P60, 000 of goods on hand as of March 12. The following additional data is available from the books: Inventory on hand, March 1 P84,000 Purchases received, March 1 – 11 P63,000 Sales (goods delivered to customers) P120,000 Estimate the inventory of goods on hand at the close of business on March 11 by the gross profit method and determine the amount of the theft loss. Show appropriate titles for all amounts in your presentation. Past records indicate that sales are made at 25% above sales. Answer: Beginning Inventory Add Purchases Goods Available Goods Sold Estimated Ending Inventory Physical Inventory Theft Loss
PROBLEM 23: The records of Santiago were destroyed by fire at the end of the current year. However, certain statistical data related to the income statement are available: Interest expense P 20,000 Cost of goods sold 2,000,000 Sales discount 100,000 The beginning inventory was P400,000 and decreased 20% during the year. Administrative expenses are 25% of cost of goods sold but only 10% of gross sales. Four fifths of the operating expenses relate to sale activities. 29. Ignoring income tax, what is the net income for the current year?
An inventory taken the morning after a large theft discloses $60,000 of goods on hand as of March 12. The following additional data is avalaible from the books: Inventory on hand, March 1 $84,000 Purchases received, March 1-11 $63,000 Sales $120,000 Past records indicate that the gross profit is 50% of the cost of goods sold. Instructions Estimate the inventory of goods on hand at the close of business on March 11 by the gross profit method and determine the amount of the theft loss. show appropriate titles for all amounts in your presentation.
On March 5, Blowout Sales makes $22,500 in sales on account. The cost of the merchandise sold is $16,825. Journalize the sales and recognition of the cost of merchandise sold.
A company purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $200 worth of merchandise. On July 28, it paid the full amount due. The amount of the cash paid on July 28 equals: $200. $1,564. $1,568. $1,600. $1,800.
M7-11 to 13 Calculating Cost of Goods Available for Sale, Cost of Goods Sold, and Ending Inventory under Periodic FIFO, LIFO, and Weighted Average Cost [LO 7-3] [The following information applies to the questions displayed below.] In its first month of operations, Literacy for the Illiterate opened a new bookstore and bought merchandise in the following order: (1) 340 units at $9 on January 1, (2) 630 units at $10 on January 8, and (3) 930 units at $12 on January 29. M7-11 Calculating Cost of Goods Available for Sale, Cost of Goods Sold, and Ending Inventory under Periodic FIFO [LO 7-3] Assume 1,170 units are on hand at the end of the month, calculate the cost of goods available for sale, ending inventory, and cost of goods sold under FIFO. Assume a periodic inventory system is used. (Round "Cost per Unit" to 2 decimal places.)
1. Purchased inventory with a cost of $26,300 on account. li. Sales on account to customers totalled $59,300. lii. Payments made to employees for wages totalled $19,000. iv. Cash collections from customers settling their accounts totalled $42,100. v. Invoice received from the utility company for $3700 is due in 30 days. Vi. Payments totalling $21,000 were made to suppliers to settle part of the balance owing to them Vii. Received a deposit of $2,600 from a customer for goods to be delivered next month. Calculate the revenue, expenses, net income that would be reported on the cash basis. Enter loss amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g (45).) Revenues Expenses Net Income / (Loss) $ $

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