Current Attempt in Progress Bonita 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 $178,300 Sales revenue $607,900 Purchases for the year 355,000 Sales returns 21,600 Purchase returns 27,700 Rate of gross profit on net sales 30 % 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. Compute the amount of the loss as a result of the fire, assuming that the corporation had no insurance coverage. Amount of the loss $

Current Attempt in Progress Bonita 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 $178,300 Sales revenue $607,900 Purchases for the year 355,000 Sales returns 21,600 Purchase returns 27,700 Rate of gross profit on net sales 30 % 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. Compute the amount of the loss as a result of the fire, assuming that the corporation had no insurance coverage. Amount of the loss $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Estimating Inventory Loss Using Gross Profit Method On November 15, a fire destroyed Youngstown Inc.'s warehouse where inventory is stored. It is estimated that $12,000 can be realized from sale of usable but damaged inventory. The accounting records concerning inventory reveal the following. Gross profit averaged 35% of net sales. Inventory at Nov. 1 Purchases from Nov. 1 to Nov. 15 Net sales from Nov. 1 to Nov. 15 $144,000 168,000 240,000 Required a. Calculate the estimated loss of inventory using the gross profit method. $ 144,000 b. Assume instead that the markup is 25% of cost. Estimate the loss of inventory using the gross profit method. $ 120,000 X
Current Attempt in Progress Blossom Company reported the following information for November and December 2022. November December Cost of goods purchased $535,000 $ 603,000 Inventory, beginning-of-month 129,000 116,050 Inventory, end-of-month 116.050 Sales revenue 843.000 1,000.000 Blossom's ending inventory at December 31 was destroyed in a fire. (a) Your answer is incorrect Compute the gross profit rate for November. Gross profit rate 36.5
None
Riverbed Inc.’s April 30 inventory was destroyed by the explosion of an underground oil tank. January 1 inventory was $322,000 and purchases for January through April totalled $790,000. Sales for the same period were $1.2 million. Riverbed 's normal gross profit percentage is 30%.Using the gross profit method, estimate the amount of Riverbed 's April 30 inventory that was destroyed. Estimated ending inventory destroyed in explosion $enter a dollar amount of the ending inventory
i need the answer quickly
Inventory Turnover and Days' Sales in Inventory The Northern Company installed a new inventory management system at the beginning of Year 1. Shown below are data from the company's accounting records as reported by the new system: Year 1 Year 2 Sales revenue $13,500,000 $16,500,000 Cost of goods sold 7,500,000 8,850,000 Beginning inventory 1,200,000 1,260,000 Ending inventory 1,260,000 1,400,000 Calculate the company's (a) inventory turnover and (b) days' sales in inventory for both years. Round to two decimals. Use the rounded answers in your calculations. Year 1 Year 2 (a) Inventory turnover (b) Days' sales in inventory
View Policies Current Attempt in Progress Whispering Winds Corporation uses a perpetual inventory system and had inventory worth $88,500 at the beginning of the year. Purchases were made during the year for $393,000; however, 10% of these goods were returned to the supplier, and a 3% discount was taken on the remaining balance owing. Whispering Winds paid $3,500 cash for freight to ship the inventory to its location during the year. Whispering Winds reported cost of goods sold for the year of $295,000. Whispering Winds has a calendar year end. What is the balance in the inventory account at the end of the year? Balance If Whispering Winds counted its actual inventory balance as $118,000 at the end of the year, what adjusting entry, if any, would be made? (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit…
Inventory Turnover The following data (in millions) were taken from recent annual reports of Tomato Computer, Inc., a manufacturer of personal computers and related products, and Happy Times Corporation, a manufacturer and distributor of greeting cards and related products: Tomato Happy Times Cost of merchandise sold $3,670,800 $2,159,400 Inventory, end of year 86,000 106,000 Inventory, beginning of the year 52,000 130,000 a. Determine the inventory turnover for Tomato and Happy Times. Round to one decimal place. Tomato Нарру Times b. Would you expect Happy Times inventory turnover to be higher or lower than Tomato's? Lower v Feedback V Check My Work a. Divide the cost of goods sold by the average inventory. The average inventory is the total of the beginning and ending inventories divided by two. b. Consider the components involved in this ratio. Generally, the larger the inventory turnover the more efficiently and effectively the company is managing inventory.
answer in text form please (without image)
None