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Assume that the following was extracted from Massy's accounting information system for operations at this outlet for the week, up to the time of the fire. Sales Purchases Sales Returns $ 830,000 580,000 42,000 Purchases Returns Beginning Inventory $ 56,000 160,000 The company's gross profit percent based on net selling price is 40%. Merchandise with a selling price of $60,000 remaind undamaged after the fire. Some smoke damaged merchandise had a residual value of $18,200. The company is in the process of estimating its fire loss on inventory using the gross profit method, for insurance purposes. 3 Required: Prepare a detailed schedule to compute the estimated fire loss incurred on inventory.

Assume that the following was extracted from Massy's accounting information system for operations at this outlet for the week, up to the time of the fire. Sales Purchases Sales Returns $ 830,000 580,000 42,000 Purchases Returns Beginning Inventory $ 56,000 160,000 The company's gross profit percent based on net selling price is 40%. Merchandise with a selling price of $60,000 remaind undamaged after the fire. Some smoke damaged merchandise had a residual value of $18,200. The company is in the process of estimating its fire loss on inventory using the gross profit method, for insurance purposes. 3 Required: Prepare a detailed schedule to compute the estimated fire loss incurred on inventory.

Financial And Managerial Accounting
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter5: Accounting For Retail Businesses
Section: Chapter Questions
Problem 41E: Cost of goods sold and related items The following data were extracted from the accounting records...
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Assume that the following was extracted from Massy's accounting information system for operations at this outlet for the week, up to the time of the fire. Sales Purchases Sales Returns $ 830,000 580,000 42,000 Purchases Returns Beginning Inventory $ 56,000 160,000 The company's gross profit percent based on net selling price is 40%. Merchandise with a selling price of $60,000 remaind undamaged after the fire. Some smoke damaged merchandise had a residual value of $18,200. The company is in the process of estimating its fire loss on inventory using the gross profit method, for insurance purposes. 3 Required: Prepare a detailed schedule to compute the estimated fire loss incurred on inventory.
Transcribed Image Text:Assume that the following was extracted from Massy's accounting information system for operations at this outlet for the week, up to the time of the fire. Sales Purchases Sales Returns $ 830,000 580,000 42,000 Purchases Returns Beginning Inventory $ 56,000 160,000 The company's gross profit percent based on net selling price is 40%. Merchandise with a selling price of $60,000 remaind undamaged after the fire. Some smoke damaged merchandise had a residual value of $18,200. The company is in the process of estimating its fire loss on inventory using the gross profit method, for insurance purposes. 3 Required: Prepare a detailed schedule to compute the estimated fire loss incurred on inventory.
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