On Vincent Inc.'s 2nd year of operation, the owner noticed a possible theft of its inventories. The following data are gotten from its operations:If the physical ending inventory were valued at $325,000, what amount is the estimated loss from inventory theft? Year 1Year 2$ 1,200,000100,00050,000$ 1,500,000120,00060,000PurchasesFreight inPurchase returns andallowancesPurchase discount40,0001,300,000100,00070,0001,800,000250,000SalesSales returns andallowancesSales discount120,000900,000150,000?Cost of sales

Loss from theft refers to the loss of inventory which is stolen from the warehouse in the…

On Vincent Inc.'s 2nd year of operation, the owner noticed a possible theft of its inventories. The following data are gotten from its operations: If the physical ending inventory were valued at $325,000, what amount is the estimated loss from inventory theft?

On Vincent Inc.'s 2nd year of operation, the owner noticed a possible theft of its inventories. The following data are gotten from its operations: If the physical ending inventory were valued at $325,000, what amount is the estimated loss from inventory theft?

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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Concept explainers

Property Insurance

Property insurance protects property from unforeseeable loss or damage and covers property owners' liability. Property insurance provides financial compensation to the property owner or renter in the event of damage or theft, as well as to someone other than the owner or renter if that person is injured on the property. Property insurance covers all risks of damage caused by theft, fire, flood, cyclones, lighting, and natural calamities, among other things. The primary goal of property insurance is to require the property owner to cover the loss. A monthly premium is paid to the insurance company, and in exchange, the insurance company pays for damage based on the agreement stated in the policy. Property insurance protects assets such as a vehicle, auto, car, rental home, house, and valuable property.

Question

On Vincent Inc.'s 2^nd year of operation, the owner noticed a possible theft of its inventories. The following data are gotten from its operations:

If the physical ending inventory were valued at $325,000, what amount is the estimated loss from inventory theft?

Year 1
Year 2
$ 1,200,000
100,000
50,000
$ 1,500,000
120,000
60,000
Purchases
Freight in
Purchase returns and
allowances
Purchase discount
40,000
1,300,000
100,000
70,000
1,800,000
250,000
Sales
Sales returns and
allowances
Sales discount
120,000
900,000
150,000
?
Cost of sales

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