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Swifty Company lost most of its inventory in a fire in December just before the year-end physical inventory was The corporation's books disclosed the following. Beginning inventory Purchases for the year Purchase returns $172,400 389,000 28,600 Sales revenue Sales returns Rate of gross profit on net sales $671,100 23,900 30 % Merchandise with a selling price of $20,100 remained undamaged after the fire. Damaged merchandise with an origi elling price of $15,200 had a net realizable value of $5,600.

Swifty Company lost most of its inventory in a fire in December just before the year-end physical inventory was The corporation's books disclosed the following. Beginning inventory Purchases for the year Purchase returns $172,400 389,000 28,600 Sales revenue Sales returns Rate of gross profit on net sales $671,100 23,900 30 % Merchandise with a selling price of $20,100 remained undamaged after the fire. Damaged merchandise with an origi elling price of $15,200 had a net realizable value of $5,600.

FINANCIAL ACCOUNTING
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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Swifty 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 $172,400 389,000 28,600 Amount of the loss $ Sales revenue Sales returns Rate of gross profit on net sales $671,100 23,900 30 % Merchandise with a selling price of $20,100 remained undamaged after the fire. Damaged merchandise with an original selling price of $15,200 had a net realizable value of $5,600. Compute the amount of the loss as a result of the fire, assuming that the corporation had no insurance coverage.
Transcribed Image Text:Swifty 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 $172,400 389,000 28,600 Amount of the loss $ Sales revenue Sales returns Rate of gross profit on net sales $671,100 23,900 30 % Merchandise with a selling price of $20,100 remained undamaged after the fire. Damaged merchandise with an original selling price of $15,200 had a net realizable value of $5,600. Compute the amount of the loss as a result of the fire, assuming that the corporation had no insurance coverage.
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