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Carson Electronics experienced significant damage to their warehouse and some accounting records due to flooding. The company needs to estimate their gross margin for insurance purposes. Carson uses a periodic inventory system, and the following information was recovered: • Beginning inventory: $285,000 Purchases up to flood date: $523,400 • • Sales up to flood date: $748,500 Value of salvaged inventory: $142,300 Historically, Carson's gross margin has averaged 25% of sales. Required: Calculate the estimated gross margin in dollars.

Carson Electronics experienced significant damage to their warehouse and some accounting records due to flooding. The company needs to estimate their gross margin for insurance purposes. Carson uses a periodic inventory system, and the following information was recovered: • Beginning inventory: $285,000 Purchases up to flood date: $523,400 • • Sales up to flood date: $748,500 Value of salvaged inventory: $142,300 Historically, Carson's gross margin has averaged 25% of sales. Required: Calculate the estimated gross margin in dollars.

Century 21 Accounting General Journal
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter20: Accounting For Inventory
Section: Chapter Questions
Problem 1CP
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Subject: general Accounting

Carson Electronics experienced significant damage to their warehouse and some accounting records due to flooding. The company needs to estimate their gross margin for insurance purposes. Carson uses a periodic inventory system, and the following information was recovered: • Beginning inventory: $285,000 Purchases up to flood date: $523,400 • • Sales up to flood date: $748,500 Value of salvaged inventory: $142,300 Historically, Carson's gross margin has averaged 25% of sales. Required: Calculate the estimated gross margin in dollars.
Transcribed Image Text:Carson Electronics experienced significant damage to their warehouse and some accounting records due to flooding. The company needs to estimate their gross margin for insurance purposes. Carson uses a periodic inventory system, and the following information was recovered: • Beginning inventory: $285,000 Purchases up to flood date: $523,400 • • Sales up to flood date: $748,500 Value of salvaged inventory: $142,300 Historically, Carson's gross margin has averaged 25% of sales. Required: Calculate the estimated gross margin in dollars.
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