Tillman, Inc, bills its only branch for merchandise shipments at a markup of 20% above home office cost .the branch sells the merchandise at markup of 10% above billed price. Shortly after the close of business on January 20, 1999, some of the branch merchandise was destroyed by fire. The following additional information is available:Inventories, Jan. 1 (at billed prices from home office) 20,000$Inventories Jan. 20, of merchandise not destroyed (at selling prices) 6,150Shipments from home office Jan. 1 to 20 (at billed prices) 60,000Sales from Jan. 1 to 20 48,000Sales returns from Jan. 1 to 28 (merchandise actually returned) 2,000Sales allowances from Jan. 1 to 20 (price adjustments) 700 Compute the estimated cost (to the home office) of the merchandise destroyed by fire at the branch of Tillman on January 20, 1999.

Name: Tillman, Inc, bills its only branch for merchandise shipments at a mar
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Description: Tillman, Inc, bills its only branch for merchandise shipments at a markup of 20% above home office cost .the branch sells the merchandise at markup of 10% above billed price. Shortly after the close of business on January 20, 1999, some of the branch

1. Cost of goods sold for sales by branch = (Sales - Sales returns) / (1+markup) = ($48,000 -…

Answered: Tillman, Inc, bills its only branch for…

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

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Chapter1: Financial Statements And Business Decisions

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Tillman, Inc, bills its only branch for merchandise shipments at a markup of 20% above home office cost .the branch sells the merchandise at markup of 10% above billed price.

Shortly after the close of business on January 20, 1999, some of the branch merchandise was destroyed by fire. The following additional information is available:

Inventories, Jan. 1 (at billed prices from home office) 20,000$
Inventories Jan. 20, of merchandise not destroyed (at selling prices) 6,150
Shipments from home office Jan. 1 to 20 (at billed prices) 60,000
Sales from Jan. 1 to 20 48,000
Sales returns from Jan. 1 to 28 (merchandise actually returned) 2,000
Sales allowances from Jan. 1 to 20 (price adjustments) 700

Compute the estimated cost (to the home office) of the merchandise destroyed by fire at the branch of Tillman on January 20, 1999.

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