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An inventory took the morning after a large theft discloses $60,000 of goods on hand as of March 12. The following additional data is available from the books: Inventory on hand, March 1 Purchases received, March 1 $ 84,000 63,000 Sales (goods delivered to customers) 120,000 Records indicate that sales are made at 50% above cost. Required: 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.

An inventory took the morning after a large theft discloses $60,000 of goods on hand as of March 12. The following additional data is available from the books: Inventory on hand, March 1 Purchases received, March 1 $ 84,000 63,000 Sales (goods delivered to customers) 120,000 Records indicate that sales are made at 50% above cost. Required: 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.

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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An inventory took the morning after a large theft discloses $60,000 of goods on hand as of March 12. The following additional data is available from the books: Inventory on hand, March 1 Purchases received, March 1 $ 84,000 63,000 Sales (goods delivered to customers) 120,000 Records indicate that sales are made at 50% above cost. Required: 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.
Transcribed Image Text:An inventory took the morning after a large theft discloses $60,000 of goods on hand as of March 12. The following additional data is available from the books: Inventory on hand, March 1 Purchases received, March 1 $ 84,000 63,000 Sales (goods delivered to customers) 120,000 Records indicate that sales are made at 50% above cost. Required: 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.
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