Crane Company lost all of its inventory in a fire on December 26, 2022. The accounting records showed the following inventory- related data for November and December. November December (to 12/26) Net sales $600,000 $700,000 Beginning inventory 30,000 36,000 Purchases 392,000 420,000 Purchase returns and allowances 13,500 14,500 Purchase discounts 8,500 9,500 Freight-in 8,000 9,900 Ending inventory 36,000 ? Crane is fully insured for fire losses but must prepare a report for the insurance company. (a) Your answer is correct. Compute the gross profit rate for November. (b) Gross profit rate eTextbook and Media × Your answer is incorrect. 38 % Using the gross profit rate for November, determine the estimated cost of the inventory lost in the fire. Estimated inventory lost in fire $ 22000 Assistance Used Attempts: 2 of 5 used

Crane Company lost all of its inventory in a fire on December 26, 2022. The accounting records showed the following inventory- related data for November and December. November December (to 12/26) Net sales $600,000 $700,000 Beginning inventory 30,000 36,000 Purchases 392,000 420,000 Purchase returns and allowances 13,500 14,500 Purchase discounts 8,500 9,500 Freight-in 8,000 9,900 Ending inventory 36,000 ? Crane is fully insured for fire losses but must prepare a report for the insurance company. (a) Your answer is correct. Compute the gross profit rate for November. (b) Gross profit rate eTextbook and Media × Your answer is incorrect. 38 % Using the gross profit rate for November, determine the estimated cost of the inventory lost in the fire. Estimated inventory lost in fire $ 22000 Assistance Used Attempts: 2 of 5 used

Name: Crane Company lost all of its inventory in a fire on December 26, 202
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Description: Crane Company lost all of its inventory in a fire on December 26, 2022. The accounting records showed the following inventory-related data for November and December.NovemberDecember(to 12/26)Net sales$600,000$700,000Beginning inventory30,00036,000Pu

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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