**Ayayai Company Inventory Loss Analysis**Ayayai 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:** $183,500- **Purchases for the Year:** $358,400- **Purchase Returns:** $30,000- **Sales Revenue:** $683,600- **Sales Returns:** $22,800- **Rate of Gross Profit on Net Sales:** 30%Additional Information:- Merchandise with a selling price of $23,100 remained undamaged after the fire.- Damaged merchandise with an original selling price of $15,000 had a net realizable value of $5,800.**Objective:**Compute the amount of the loss as a result of the fire, assuming that the corporation had no insurance coverage.**Amount of the Loss:**\[ \text{Amount of the loss} = \_\_\_\_ \] Please use this information to calculate the loss incurred by Ayayai Company due to the fire.

Name: **Ayayai Company Inventory Loss Analysis**Ayayai Company lost most of
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Description: **Ayayai Company Inventory Loss Analysis**Ayayai 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:** $183,500- **

solution : net purchase =358400 – 30000 =328400 Net sales…

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corporation's books disclosed the following. Beginning inventory $ 183,500 Sales revenue $683,600 Purchases for the year 358,400 Sales returns 22,800 Purchase returns 30,000 Rate of gross profit on net sales 30 % Merchandise with a selling price of $ 23,100 remained undamaged after the fire. Damaged merchandise with an ori of $ 15,000 hada net realizable value of $ 5,800. Comp amount Fthe loss as a resu the fire assuming that the corporation had no insurance coverage

corporation's books disclosed the following. Beginning inventory $ 183,500 Sales revenue $683,600 Purchases for the year 358,400 Sales returns 22,800 Purchase returns 30,000 Rate of gross profit on net sales 30 % Merchandise with a selling price of $ 23,100 remained undamaged after the fire. Damaged merchandise with an ori of $ 15,000 hada net realizable value of $ 5,800. Comp amount Fthe loss as a resu the fire assuming that the corporation had no insurance coverage

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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