On September 22, 2021, a flood destroyed the entire merchandise Inventory on hand in a warehouse owned by the Rocklin Sporting Goods Company. The following information is available from the records of the company's periodic Inventory system: Inventory, January 1, 2021 Net purchases, January 1 through September 22 Net sales, January 1 through September 22 Gross profit ratio $159,000 389,000 645,000 208 Required: Complete the below table to estimate the cost of inventory destroyed in the flood using the gross profit method. 24 159,000 Beginning inventory Plus: Net purchases 389,000 548,000 Cost of goods available for sale Less: Cost of goods sold: $ 645,000 O Net sales Less: Estimated gross profit 645,000 Estimated cost of goods sold 2$ (97,000) Estimated cost of inventory destroyed *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted.

On September 22, 2021, a flood destroyed the entire merchandise Inventory on hand in a warehouse owned by the Rocklin Sporting Goods Company. The following information is available from the records of the company's periodic Inventory system: Inventory, January 1, 2021 Net purchases, January 1 through September 22 Net sales, January 1 through September 22 Gross profit ratio $159,000 389,000 645,000 208 Required: Complete the below table to estimate the cost of inventory destroyed in the flood using the gross profit method. 24 159,000 Beginning inventory Plus: Net purchases 389,000 548,000 Cost of goods available for sale Less: Cost of goods sold: $ 645,000 O Net sales Less: Estimated gross profit 645,000 Estimated cost of goods sold 2$ (97,000) Estimated cost of inventory destroyed *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted.

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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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