A fire completely destroy the entire inventory of printing Delinko on March 15 20–. Fortunately the books we’re not destroyed in the fire. The following information is taken from the books of Printing Delight Co. for the time period January 1, 20- through March 15, 20- c.58,410.d. $8,570.32 A fire completely destroyed the entire inventory of Printing Delight Co. on March 15, 20--.Fortunately, the books were not destroyed in the fire. The following information is taken from the booksof Printing Delight Co. for the time period, January 1, 20-- through March 15, 20--:Beginning inventory, January 1, 20--Net purchases, January 1, through March 15, 20--Net sales, January 1, through March 15, 20--$ 45,000252,000378,000Normalgross profit percentage of sales37%Required:Estimate the cost of goods sold for the time period January 1 through March 15, 20--,using the gross profit method.2.1.Estimatè the amount of merchandise inventory destroyed in the fire on March 15, 20--,using the gross profit method.Estimated cost of goods sold:1.Net sales$378,000Estimated cost of goods sold2.Estimated inventofy at March 15, 20--:Inventory, January 1, 20--$ 45,000Less estimated cost of goods soldEstimated inventory on March 15. 20--

As per the gross profit method, the ending inventory is determined after deducting the COGS from the…

Answered: d. $8,570. 32 A fire completely…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Question

A fire completely destroy the entire inventory of printing Delinko on March 15 20–. Fortunately the books we’re not destroyed in the fire. The following information is taken from the books of Printing Delight Co. for the time period January 1, 20- through March 15, 20-

c.
58,410.
d. $8,570.
32 A fire completely destroyed the entire inventory of Printing Delight Co. on March 15, 20--.
Fortunately, the books were not destroyed in the fire. The following information is taken from the books
of Printing Delight Co. for the time period, January 1, 20-- through March 15, 20--:
Beginning inventory, January 1, 20--
Net purchases, January 1, through March 15, 20--
Net sales, January 1, through March 15, 20--
$ 45,000
252,000
378,000
Normal
gross profit percentage of sales
37%
Required:
Estimate the cost of goods sold for the time period January 1 through March 15, 20--,
using the gross profit method.
2.
1.
Estimatè the amount of merchandise inventory destroyed in the fire on March 15, 20--,
using the gross profit method.
Estimated cost of goods sold:
1.
Net sales
$378,000
Estimated cost of goods sold
2.
Estimated inventofy at March 15, 20--:
Inventory, January 1, 20--
$ 45,000
Less estimated cost of goods sold
Estimated inventory on March 15. 20--

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions