Gage’s accounting records included the following information: Inventory, 01-01-15 $211,000 Purchases during 2015 $805,000 Purchase returns during 2015 $4,000 Freight-out on 2015 sales $10,000 Sales during 2015 $1,662,000 Sales returns during 2015 $60,000 Gage completed a physical inventory on 12-31-15 and calculated an ending inventory of $100,000, at retail selling price. In recent years, Gage's gross profit equaled 42% of Gage’s selling price. Gage suspects some inventory may have been shoplifted. Prepare the entry, if necessary, to reflect the estimated loss from any shoplifted items.
Gage’s accounting records included the following information:
Inventory, 01-01-15 $211,000
Purchases during 2015 $805,000
Purchase returns during 2015 $4,000
Freight-out on 2015 sales $10,000
Sales during 2015 $1,662,000
Sales returns during 2015 $60,000
Gage completed a physical inventory on 12-31-15 and calculated an ending inventory of $100,000, at retail selling price. In recent years, Gage's gross profit equaled 42% of Gage’s selling price. Gage suspects some inventory may have been shoplifted. Prepare the entry, if necessary, to reflect the estimated loss from any shoplifted items.
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