A substantial portion of inventory owned by Prentiss Sporting Goods was recently destroyed when the roof collapsed during arainstorm. Prentiss also lost some of its accounting records. Prentiss must estimate the loss from the storm for insurance reporting andfinancial statement purposes. Prentiss uses the periodic inventory system. The following accounting information was recovered fromthe damaged records.Beginning inventoryPurchases to date of storm$196,000398,000600,800Sales to date of stormThe value of undamaged inventory counted was $102,676. Historically, Prentiss' gross margin percentage has been approximately 22percent of sales.RequiredEstimate the following:a. Gross margin in dollars.b. Cost of goods sold in dollars.c. Ending inventory.d. Amount of lost inventory.a. Gross marginb. Cost of goods soldc. Estimated ending inventoryd. Inventory lost

Inventory means the stock of goods in which the businessmen deals. Cost of goods sold means the…

Answered: A substantial portion of inventory…

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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On September 28, 2019, a fire destroyed the entire merchandise inventory of Carroll Corporation. The fllowing information is available: What is the estimated inventor)' on September 28, 2019, immediately prior to the fire?
A substantlal portlon of Inventory owned by Prentiss Sporting Goods was recently destroyed when the roof collapsed during a ralnstorm. Prentiss also lost some of Its accounting records. Prentiss must estimate the loss from the storm for Insurance reporting and financial statement purposes. Prentiss uses the perlodic Inventory system. The following accounting information was recovered from the damaged records. Beginning inventory $196, eee 398, e00 Purchases to date of storm Sales to date of storm бее, вее The value of undamaged Inventory counted was $102,676. Hıstorically, Prentiss' gross margin percentage has been approximately 22 percent of sales. Required Estimate the following: a. Gross margin in dollars. b. Cost of goods sold in dollars. c. Ending Inventory. d. Amount of lost Inventory. a. Gross margin b. Cost of goods sold C. Estimated ending inventory d. Inventory lost
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On September 5, 20x4, a fire damaged the warehouse of Texas company. All inventory items and many accounting records stored in the warehouse was destroyed. However, a portion of the inventory could be sold for scrap. The company's backup files provide the following information: Inventory, January 1 P 750,000 Cash sales, January 1-September 5 445,000 Purchases, January 1-September 5 2,770,000 Collection of accounts receivable, January 1-September 5 4,230,000 Accounts Receivable, January 1 350,000 Accounts Receivable, September 5 530,000 Salvage value of Inventory 15,000 Gross profit ratio 32% What is the estimated inventory fire loss?
A sale trader operates his business from a warehouse ,which has been damage by a fire ,which occurred at the end of the financial year. After the fire ,the remaining inventory that is undamaged amount to Gh 2,000(Cost). The accountant establishes the following information : (a). Inventory at the beginning of the year was Gh 16,000 (b). Purchases during the year were Gh115,000 (c). Sales during the year were GH 140,000 (d).The trader sells his goods at a mark-up of 25% of cost . How much was the gross profit ?
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During the taking of its physical inventory on December 31, 2014, Barry's Bike Shop incorrectly counted its inventory as $214,605 instead of the correct amount of $168,444. The effect on the balance sheet and income statement would be a. assets overstated by $46,161; retained earnings understated by $46,161; and net income statement understated by $46,161 b. assets overstated by \$ 46.161 : retained earnings understated by $46,161; and no effect on the income statement c. assets, retained earnings, and net income all overstated by \$ 46.161 d. assets and retained earnings overstated by $46,161; and net income understated by $46,161

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