A substantlal portlon of Inventory owned by Prentiss Sporting Goods was recently destroyed when the roof collapsed during aralnstorm. 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 perlodic Inventory system. The following accounting information was recovered fromthe damaged records.Beginning inventory$196, eee398, e00Purchases to date of stormSales to date of stormбее, вееThe value of undamaged Inventory counted was $102,676. Hıstorically, 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

Answered: A substantlal 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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Flood damaged the merchandise inventory of SM Supermarket on July 25, 2020. You have discovered the following information from the records salvaged from the flood: Inventory, January 1, 2020 P1,960,000, Sales, January 1 - July 25, 2020 (including goods sold but not delivered to customers, P76,000) P19,530,000, Merchandise purchases including those still in transit, shipped FOB shipping point, P 138,000) P10,470,000, Mark-up on goods sold 40% of cost. The merchandise saved from the flood has an estimated value of P 163,000. What is the estimated value of inventory damaged by the flood? Present solutions in good accounting form.
Sheridan Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $44,080. Purchases since January 1 were $83, 520; freight - in, $3, 944; purchase returns and allowances, $2,784. Sales are made at 33 1/3% above cost and totaled $135,000 to March 9. Goods costing $12, 644 were left undamaged by the fire; remaining goods were destroyed
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?
On November 21, 2021, a fire at Hodge Company's warehouse caused severe damage to its entire inventory of Product Tex. Hodge estimates that all usable damaged goods can be sold for $22,000. The following information was available from the records of Hodge's periodic inventory system: Inventory, November 1 Net purchases from November 1, to the date of the fire Net sales from November 1, to the date of the fire $150,000 150,000 230,000 Based on recent history, Hodge's gross profit ratio on Product Tex is 35% of net sales. Required: Calculate the estimated loss on the inventory from the fire, using the gross profit method. ✓ Answer is complete but not entirely correct. Estimated loss from fire $ 153,200 ×
In 2022, Sargent Company experienced a major casualty loss. The roof of its warehouse collapsed in an ice storm and destroyed its entire inventory. The company began the year with inventory of $300. It made purchases of $5,640 but returned $80 worth of merchandise. Sales prior to the ice storm were $9,400. Sargent must use the gross profit method to determine inventory on hand on the date of the casualty. The following is an excerpt of its income statement for the last three years. 2019 2020 2021 Net Sales $5,000 $6,000 $9,000 Cost of Goods Sold 2,150 2,340 3,312 General and Administrative Expense 500 600 900 Depreciation Expense 125 200 325 Operating Income $2,225 $2,860 $4,463 Requirement. Assume that Sargent uses the most recent three years of net sales and cost of goods sold to determine its historical gross profit. What are estimated cost of goods sold, estimated gross profit, and estimated ending…
ABC Corporation lost most of its inventory in a fire on April 10, 2020. Its books disclose following data: Inventory, January 1, 2020 Purchases in 2020 Purchases returns Sales Sales returns Purchases discounts Rate of gross profit on sales S180,000 400,000 30,000 650,000 25,000 10,000 30% Through the diligence of the local Fire Department, ABC was able to salvage and merchandise costing $4,000. Required: Calculate the amount of the loss from the fire, to be presented as a claim to th company. Show your computations.
Brad Essary owned a small company that sold garden equipment. The equipment was expensive, and a perpetual system was maintained for control purposes. Even so, lost, damaged, and stolen merchandise normally amounted to 5 percent of the inventory balance. On June 14, Essary's warehouse was destroyed by fire. Just prior to the fire, the accounting records contained a $154,500 balance in the Inventory account. However, inventory costing $11,100 had been sold and delivered to customers but had not been recorded in the books at the time of the fire. The fire did not affect the showroom, which contained inventory that cost $41,200. Required Estimate the amount of inventory destroyed by fire. Inventory destroyed by fire
What did i do wrong in my calculations? On November 21, 2021, a fire at Hodge Company’s warehouse caused severe damage to its entire inventory of Product Tex. Hodge estimates that all usable damaged goods can be sold for $18,000. The following information was available from the records of Hodge’s periodic inventory system: Inventory, November 1 $ 130,000 Net purchases from November 1, to the date of the fire 146,000 Net sales from November 1, to the date of the fire 226,000 Based on recent history, Hodge’s gross profit ratio on Product Tex is 30% of net sales. Required:Calculate the estimated loss on the inventory from the fire, using the gross profit method. $134,200
please answer in text form and in proper format answer with must explanation , calculation for each part and steps clearly
Sandhill Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $ 37,240. Purchases since January 1 were $ 70,560; freight-in, $ 3,332; purchase returns and allowances, $ 2,352. Sales are made at 33 1/3% above cost and totaled $ 111,000 to March 9. Goods costing $ 10,682 were left undamaged by the fire; remaining goods were destroyed.
7. The inventory was destroyed by fire on December 31. The following data were obtained from the accounting records:
7. A fire caused heavy damage to the Anatolia Antique Store on May 21, 2023. All merchandise was destroyed. In conjunction with an insurance investigation, you have been to estimate the cost of inventory destroyed. The following data for 2023 (recorded before the fire) are available: Merchandise inventory on January 1 Gross purchases Freight-in Purchase returns and allowances Cash discounts on purchases Gross sales Sales returns and allowances Gross profit percentage on net sales Required: Estimate the cost of inventory destroyed ₺ 80.000 170.000 10.000 5.000 2.000 206.000 6.000 20%

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