IV.Lisbon Pottery lost 70% of its inventory in a fire on March 25, 2020. The accountingrecords showed the following gross profit data for February and March.FebruaryNet salesNet purchasesFreight-inBeginning inventoryEnding inventory€300,000197,8002,9004,50025,200March (to 3/25)€260,000191,0004,00025,200?Lisbon is fully insured for fire losses but must prepare a report for the insurancecompany.Instructionsa. Compute the gross profit rate for the month of February.b. Using the gross profit rate for February, determine both the estimated total inventoryand inventory lost in the fire in March.

Name: IV.Lisbon Pottery lost 70% of its inventory in a fire on March 25, 20
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Description: IV.Lisbon Pottery lost 70% of its inventory in a fire on March 25, 2020. The accountingrecords showed the following gross profit data for February and March.FebruaryNet salesNet purchasesFreight-inBeginning inventoryEnding inventory€300,000197,8002,

Gross profit rate refers to the ratio which states how much profit the business makes from the sale…

Business

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Lisbon Pottery lost 70% of its inventory in a fire on March 25, 2020. The accounting records showed the following gross profit data for February and March. March (to 3/25) February Net sales Net purchases Freight-in Beginning inventory Ending inventory €300,000 197,800 2,900 4,500 25,200 €260,000 191,000 4,000 25,200 ?

Lisbon Pottery lost 70% of its inventory in a fire on March 25, 2020. The accounting records showed the following gross profit data for February and March. March (to 3/25) February Net sales Net purchases Freight-in Beginning inventory Ending inventory €300,000 197,800 2,900 4,500 25,200 €260,000 191,000 4,000 25,200 ?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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