Coronado Company lost most of its inventory in a fire in December just before the year-end physical inventory was taken. The corporation's books disclosed the following. Beginning inventory Purchases for the year Purchase returns $178.300 Amount of the loss 355,000 27,700 $ Sales revenue Sales returns Rate of gross profit on net sales $607,900 21,600 Merchandise with a selling price of $21,000 remained undamaged after the fire. Damaged merchandise with an original selling price of $15,500 had a net realizable value of $5,300. 30 % Compute the amount of the loss as a result of the fire, assuming that the corporation had no insurance coverage.
Coronado Company lost most of its inventory in a fire in December just before the year-end physical inventory was taken. The corporation's books disclosed the following. Beginning inventory Purchases for the year Purchase returns $178.300 Amount of the loss 355,000 27,700 $ Sales revenue Sales returns Rate of gross profit on net sales $607,900 21,600 Merchandise with a selling price of $21,000 remained undamaged after the fire. Damaged merchandise with an original selling price of $15,500 had a net realizable value of $5,300. 30 % Compute the amount of the loss as a result of the fire, assuming that the corporation had no insurance coverage.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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gpu.7
Transcribed Image Text:Coronado Company lost most of its inventory in a fire in December just before the year-end physical inventory was taken. The
corporation's books disclosed the following.
Beginning inventory
Purchases for the year
Purchase returns
$178,300
Amount of the loss
355,000
$
27,700
Sales revenue
Sales returns
Rate of gross profit on net sales
$607,900
21,600
Merchandise with a selling price of $21,000 remained undamaged after the fire. Damaged merchandise with an original selling price of
$15,500 had a net realizable value of $5,300.
30 %
Compute the amount of the loss as a result of the fire, assuming that the corporation had no insurance coverage.
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