Nash Company 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 $164,700 $ 415,300 27,700 Sales revenue Sales returns Rate of gross profit on net sales $677,100 23,500 Merchandise with a selling price of $19.100 remained undamaged after the fire. Damaged merchandise with an original selling price of $13,800 had a net realizable value of $5,300. Compute the amount of the loss as a result of the fire, assuming that the corporation had no insurance coverage. 30 %
Nash Company 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 $164,700 $ 415,300 27,700 Sales revenue Sales returns Rate of gross profit on net sales $677,100 23,500 Merchandise with a selling price of $19.100 remained undamaged after the fire. Damaged merchandise with an original selling price of $13,800 had a net realizable value of $5,300. Compute the amount of the loss as a result of the fire, assuming that the corporation had no insurance coverage. 30 %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Nash Company 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
$164,700
415,300
Amount of the loss
27,700
Sales revenue
Sales returns
Rate of gross profit on net sales
$677.100
23,500
30 %
Merchandise with a selling price of $19.100 remained undamaged after the fire. Damaged merchandise with an original selling price of
$13,800 had a net realizable value of $5,300.
Compute the amount of the loss as a result of the fire, assuming that the corporation had no insurance coverage.
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