Flint SA 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 Amount of the loss R$ 166,600 R$ 441,000 29,400 Sales Sales returns Rate of gross margin on net sales R$637,000 23,520 Merchandise with a selling price of R$20,580 remained undamaged after the fire. Damaged merchandise with an original selling price of R$ 14,700 had a net realizable value of R$5,230. Compute the amount of the loss as a result of the fire, ass ning that the company had no insurance coverage. 40 %
Flint SA lost most of its inventory in a fire in December just before the year-end physical inventory was taken. The corporation's books disclosed the following. Beginning inventory Purchases for the year Purchase returns Amount of the loss R$ 166,600 R$ 441,000 29,400 Sales Sales returns Rate of gross margin on net sales R$637,000 23,520 Merchandise with a selling price of R$20,580 remained undamaged after the fire. Damaged merchandise with an original selling price of R$ 14,700 had a net realizable value of R$5,230. Compute the amount of the loss as a result of the fire, ass ning that the company had no insurance coverage. 40 %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Flint SA lost most of its inventory in a fire in December just before the year-end physical inventory was taken.
The corporation's books disclosed the following.
Beginning inventory
Purchases for the year
Purchase returns
Amount of the loss
R$ 166,600
R$
441,000
29,400
Sales
Sales returns
Rate of gross margin on net sales
R$637,000
23,520
Merchandise with a selling price of R$20,580 remained undamaged after the fire. Damaged merchandise with an
original selling price of R$ 14,700 had a net realizable value of R$5,230.
Compute the amount of the loss as a result of the fire, assuming that the company had no insurance coverage.
40 %
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