Gross Profit Method A flood completely destroyed all the inventory of Bayside Waterworks Company on July 1, 20--. Fortunately, the accounting records were not destroyed in the flood. The following information is provided by Bayside Waterworks for the time period January 1 through July 1, 20--: Beginning inventory, January 1, 20-- $60,000 Net purchases, January 1 through July 1 380,000 Net sales, January 1 through July 1 650,000 Normal gross profit as a percentage of sales 45% Required: Estimate the amount of merchandise inventory destroyed in the flood on July 1 using the gross profit method. $fill in the blank 1

Gross Profit Method A flood completely destroyed all the inventory of Bayside Waterworks Company on July 1, 20--. Fortunately, the accounting records were not destroyed in the flood. The following information is provided by Bayside Waterworks for the time period January 1 through July 1, 20--: Beginning inventory, January 1, 20-- $60,000 Net purchases, January 1 through July 1 380,000 Net sales, January 1 through July 1 650,000 Normal gross profit as a percentage of sales 45% Required: Estimate the amount of merchandise inventory destroyed in the flood on July 1 using the gross profit method. $fill in the blank 1

Name: Gross Profit MethodA flood completely destroyed all the inventory of B
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Description: Gross Profit MethodA flood completely destroyed all the inventory of Bayside Waterworks Company on July 1, 20--. Fortunately, the accounting records were not destroyed in the flood. The following information is provided by Bayside Waterworks for the

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter20: Accounting For Inventory

Section: Chapter Questions

Problem 1CP

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Gross Profit Method A flood completely destroyed all the inventory of Bayside Waterworks Company on July 1, 20--. Fortunately, the accounting records were not destroyed in the flood. The following information is provided by Bayside Waterworks for the time period January 1 through July 1, 20--: Beginning inventory, January 1, 20-- $60,000 Net purchases, January 1 through July 1 380,000 Net sales, January 1 through July 1 650,000 Normal gross profit as a percentage of sales 45% Required: Estimate the amount of merchandise inventory destroyed in the flood on July 1 using the gross profit method.
Gross Profit Method A fire completely destroyed all the inventory of Glisan Lumber Yard on August 5, 20--. Fortunately, the accounting records were not destroyed in the fire. The following information is provided by Glisan Lumber Yard for the time period January 1 through August 5: Beginning inventory, January 1, 20-- $98,000 Net purchases, January 1 through August 5 426,000 Net sales, January 1 through August 5 721,000 Normal gross profit as a percentage of sales 40% Required: Estimate the amount of merchandise inventory destroyed in the fire on August 5 using the gross profit method $_____
A fire completely destroyed all the inventory of Glisan Lumber Yard on August 5, 20- -. Fortunately, the accounting records were not destroyed in the fire. The following information is provided by Glisan Lumber Yard for the time period January 1 through August 5: Beginning inventory, January 1, 20- $94,000 Net purchases, January 1 through August 5 407,000 Net sales, January 1 through August 5 733,000 Normal gross profit as a percentage of sales 40% Required: Estimate the amount of merchandise inventory destroyed in the fire on August 5 using the gross profit method.
On March 17, 2021, a flood destroyed the entire inventory of Beatty Co. The following information is available from its accounting records: Inventory, January 1, 2021 $ 208,000 Purchases, Jan. 1 — Mar. 17 420,000 Sales, Jan. 1 — Mar. 17 600,000 Normal gross margin 40% Required:Compute the estimated cost of inventory lost in the flood.
Confucius Bookstore’s inventory is destroyed by a fire on September 5. The following data for the current year are available from the accounting records. Estimate the cost of the inventory destroyed. Beginning inventory, Jan. 1 . $190,000 Jan. 1 through Sept. 5 purchases (net) $352,000 Jan. 1 through Sept. 5 sales (net) . $685,000 Current year’s estimated gross profit rate . 44%
On April 15 of the current year, a fire destroyed the entire uninsured inventory of a retail store. The following data are available: Sales, January 1 through April 15 $600,000 Inventory, January 1 100,000 Purchases, January 1 through April 15 500,000 Markup on cost 25% The amount of the inventory loss is estimated to be O a. $120,000. O b. $100,000. O C. $150,000. O d. $60,000. Quitar mi elección ere to search 近
A flood destroyed a company's warehouse contents on September 12. The following information was the only information that was salvaged: 1. Inventory, beginning: $28,200 2. Purchases for the period: $17,200 3. Sales for the period: $55,200 4. Sales returns for the period: $720 The company's average gross profit ratio is 37%. What is the estimated cost of the lost inventory using the gross profit method? Multiple Choice $11,077.60. $25,242.40. $28,602.00. $45,400.00. $44,400.00.
Confucius Bookstore's inventory is destroyed by a fire on September 5. The following data for the current year are available from the accounting records. Beginning inventory, January 1 January 1 through September 5 purchases (net) January 1 through September 5 sales (net) Current year's estimated gross profit rate Estimate the cost of the inventory destroyed. Beginning inventory Estimated September 5 inventory destroyed $ 130,000 $ 130,000 $368,000 $ 736,000 34%
A flood on 30th Nov destroyed some of a company’s inventory and its inventory records. The following information is available:- Inventory at 1st Nov. 31,800 - Sales for Nov. 61,200- Purchases for Nov. 41,200- Inventory in good condition at 30th Nov. 21,400 The standard gross profit percentage on sales is 20%.Based on this information, what is the value of the inventory lost? ($5,700, $9,600, $2,640 or $2,710)
A fire destroyed the inventory of the Udit Company on October 16, 20x3. Data for the 20x2 fiscal year and for the year to date in 20x3 is as follows: Sales Beginning inventory Purchases Ending inventory Year ended December 31, 20x2 $5,000,000 840,000 4,300,000 850,000 Period ended October 16, 20x3 Required - Estimate the cost of the inventory destroyed on October 16, 20x3. $3,600,000 850,000 2,800,000 ????
3. On August 31, a flood at Lordgin Company's only warehouse caused severe damage to its entire inventory. Based on recent history, Lordgin has a gross profit of 25 percent of net sales. The following information is available from Lordgin's records for the eight months ended August 31: Inventory, January 1 P520,000; Net Purchases 4,060,000; Net Sales 5,200,000. A physical inventory disclosed usable damaged goods which Lordgin estimates can be sold for P70,000. Using the gross profit method, the estimated cost of goods sold for the eight months ended August 31 should be choices: P4,200,000. P3,830,000 P3,900,000 P680,000
A fire destroyed the warehouse of Reed Enterprises, on August 31, 20Y1. The books and records of Reed showed the following information on that date. Merchandise Inventory. Jan. 1, 20Y1 $600,000 Purchases to date 990,000 Freight - In 30,000 Sales to date $2,400,000 The gross profit ratio has averaged 60 % of sales for the past six years.Required:Use the gross profit method to estimate the cost of inventory destroyed by fire. Group of answer choices $660,000 $1,590,000 $1,620,000 $960,000

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Beginning inventory, January 1, 20--		$60,000
Net purchases, January 1 through July 1		380,000
Net sales, January 1 through July 1		650,000
Normal gross profit as a percentage of sales		45%