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A substantial portion of inventory owned by Prentiss Sporting Goods was recently destroyed when the roof collapsed during a rainstorm. 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 periodic inventory system. The following accounting information was recovered from the damaged records: Beginning inventory Purchases to date of storm Salės to date of storm $203,600 397,600 595, 800 The value of undamaged inventory counted was $87,486. Historically, Prentiss's gross margin percentage has been approximately 17 percent of sales. Required Estimate the following: a. Gross margin in dollars. Gross margin b. Cost of goods sold in dollars. Cost of goods sold

A substantial portion of inventory owned by Prentiss Sporting Goods was recently destroyed when the roof collapsed during a rainstorm. 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 periodic inventory system. The following accounting information was recovered from the damaged records: Beginning inventory Purchases to date of storm Salės to date of storm $203,600 397,600 595, 800 The value of undamaged inventory counted was $87,486. Historically, Prentiss's gross margin percentage has been approximately 17 percent of sales. Required Estimate the following: a. Gross margin in dollars. Gross margin b. Cost of goods sold in dollars. Cost of goods sold

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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Check my work A substantial portion of inventory owned by Prentiss Sporting Goods was recently destroyed when the roof collapsed during a rainstorm. 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 periodic inventory system. The following accounting information was recovered from the damaged records: Beginning inventory Purchases to date of storm Salės to date of storm $203,600 397,600 595,800 The value of undamaged inventory counted was $87,486. Historically, Prentiss's gross margin percentage has been approximately 17 percent of sales. Required Estimate the following: a. Gross margin in dollars. Gross margin b. Cost of goods sold in dollars. Cost of goods sold
Transcribed Image Text:Check my work A substantial portion of inventory owned by Prentiss Sporting Goods was recently destroyed when the roof collapsed during a rainstorm. 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 periodic inventory system. The following accounting information was recovered from the damaged records: Beginning inventory Purchases to date of storm Salės to date of storm $203,600 397,600 595,800 The value of undamaged inventory counted was $87,486. Historically, Prentiss's gross margin percentage has been approximately 17 percent of sales. Required Estimate the following: a. Gross margin in dollars. Gross margin b. Cost of goods sold in dollars. Cost of goods sold
c. Ending inventory. Estimated ending inventory es d. Amount of lost inventory. Inventory lost
Transcribed Image Text:c. Ending inventory. Estimated ending inventory es d. Amount of lost inventory. Inventory lost
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