On September 22, 2024, 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, 2024 Net purchases, January 1 through September 22 Net sales, January 1 through September 22 Gross profit ratio $ 144,000 374,000 570,000 30% Required: Complete the below table to estimate the cost of inventory destroyed in the flood using the gross profit method. Beginning inventory Plus: Net purchases Cost of goods available for sale Less: Cost of goods sold: Net sales Less: Estimated gross profit Estimated cost of goods sold Estimated cost of inventory destroyed $ 0 0 0
On September 22, 2024, 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, 2024 Net purchases, January 1 through September 22 Net sales, January 1 through September 22 Gross profit ratio $ 144,000 374,000 570,000 30% Required: Complete the below table to estimate the cost of inventory destroyed in the flood using the gross profit method. Beginning inventory Plus: Net purchases Cost of goods available for sale Less: Cost of goods sold: Net sales Less: Estimated gross profit Estimated cost of goods sold Estimated cost of inventory destroyed $ 0 0 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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![On September 22, 2024, 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, 2024
Net purchases, January 1 through September 22
Net sales, January 1 through September 22
Gross profit ratio
$ 144,000
374,000
570,000
30%
Required:
Complete the below table to estimate the cost of inventory destroyed in the flood using the gross profit method.
Beginning inventory
Plus: Net purchases
Cost of goods available for sale
Less: Cost of goods sold:
Net sales
Less: Estimated gross profit
Estimated cost of goods sold
Estimated cost of inventory destroyed
$
0
0
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb3b64eb1-870f-4d30-8e97-740c3909fe35%2F4d61d459-5cb5-4169-962b-e09d7899cda0%2Fuja3bh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On September 22, 2024, 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, 2024
Net purchases, January 1 through September 22
Net sales, January 1 through September 22
Gross profit ratio
$ 144,000
374,000
570,000
30%
Required:
Complete the below table to estimate the cost of inventory destroyed in the flood using the gross profit method.
Beginning inventory
Plus: Net purchases
Cost of goods available for sale
Less: Cost of goods sold:
Net sales
Less: Estimated gross profit
Estimated cost of goods sold
Estimated cost of inventory destroyed
$
0
0
0
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