Wallace 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 $170,000      Sales revenue $650,000 Purchases for the year 390,000      Sales returns 24,000 Purchase returns 30,000      Rate of gross profit on net sales 40% Merchandise with a selling price of $21,000 remained undamaged after the fire. Damaged merchandise with an original selling price of $15,000 had a net realizable value of $5,300. Instructions Compute the amount of the loss as a result of the fire, assuming that the corporation had no insurance coverage.

Q: the following information appears in B corporation's records for the year ended December 31:…

A: Net sales = Sales - sales discount - sales return = $3,400,000 -  20,000 - 30,000 = $3,350,000 Cost…

Q: On February 26, a hurricane destroyed the entire inventory stored in a warehouse owned by the…

A: Given,  Gp ratio = 40% = 100 * Gross profit / Net sales Purchase = 420000 Net sales = 620000…

Q: Data table Inventory, December 1 Transactions December 1-15: Purchases Purchases discounts Purchase…

A: COGS is an important financial indicator since it has a direct influence on a company's gross…

Q: Adams Corporation estimates that it lost $75,000 in inventory from a recent flood. The following…

A: Formula to calculate gross profit ratio:

Q: On February 26, a hurricane destroyed the entire inventory stored in a warehouse owned by the…

A: Net purchases and beginning inventories are included in the cost of commodities that are offered for…

Q: Coronado Company took a physical inventory on December 31 and determined that goods costing $199,600…

A: The inventory valuation method used to evaluate the closing inventory and cost of goods sold on the…

Q: On July 8, a fire destroyed the entire merchandise inventory on hand of Larrenaga Wholesale…

A: The ending inventory is calculated as difference between cost of goods available for sale and cost…

Q: Sarasota Lumber Company handles three principal lines of merchandise with these varying rates of…

A: Inventories are the current assets held for sale or manufacture in the ordinary course of business.…

Q: Vibrant Company had $980,000 of sales in each of Year 1, Year 2, and Year 3, and it purchased…

A: calculation of gross profit and showing of error are as follows

Q: Pronghorn Company lost most of its inventory in a fire in December just before the year-end physical…

A: Net Purchases = Purchases for the year - Purchase returns= $295,600 - $27,900= $267,700Net sales =…

Q: Lily Company needs to determine the amount of inventory in its warehouse at the time that an…

A: Cost of goods available for sale = Beginning inventory + purchases Cost of goods sold = Sales -…

Q: On March 15, a fire destroyed MyCompany's entire retail inventory. The inventory on hand as of…

A: Cost of goods sold = Beginning inventory + Purchases + Freight in - Closing inventory

Q: Compute the amount of the loss as a result of the fire, assuming that the corporation had no…

A: The inventory that is sold or distributed and that has been purchased as finished goods or requires…

Q: Over the past 3 years, the gross profit rate for Jini Company was 30%. Last week a fire destroyed…

A: Inventory destroyed = Beginning inventory + Net purchases - Cost of goods sold Cost of goods sold =…

Q: Grouper Company lost most of its inventory in a fire in December just before the year-end physical…

A: Lets understand the basics. When inventory gets damaged due to fire then loss due to fire needs to…

Q: corporation's books disclosed the following. Beginning inventory $ 183,500 Sales revenue $683,600…

A: solution : net purchase     =358400 – 30000                              =328400 Net sales…

Q: A fire destroyed the warehouse of Reed Enterprises, on August 31, 20Y1. The books and records of…

A: Gross profit is the difference between the sales and the cost of goods sold. The gross profit ratio…

Q: Crane Company lost all of its inventory in a fire on December 26, 2022. The accounting records…

A: The cost of goods sold is the formula used to compute the cost incurred on the goods sold during the…

Q: Muller Computers stores its inventory in a warehouse that burned to the ground in late November,…

A: Cost of goods sold = Sales - Gross profit where, Gross profit = Sales x Gross profit rate

Q: Howard's Supply Co. suffered a fire loss on April 20, 2021. The company's last physical inventory…

A: Inventory is considered as current assets of the company. It is considered as most valuable asset as…

Q: corporation's books disclosed the following. Beginning inventory Purchases for the year Purchase…

A: The cost of goods sold includes the cost of goods that are sold during the period. The ending…

Q: Confucius Bookstore's inventory is destroyed by a fire on September 5. The following data for the…

A: The inventory can be valued using various methods as LIFO, FIFO and weighted average method. The…

Q: The merchandise inventory was destroyed by fire on December 13. The following data were obtained…

A:

Q: Marigold Corporation's April 30 inventory was destroyed by fire. January 1 inventory was $164,900,…

A: The inventory valuation method used to evaluate the closing inventory and cost of goods sold. In…

Q: Z Wholesale Company began the year with merchandise inventory of $5,000. During the year, Z…

A: Net purchases :— It is gross purchases less purchase return & allowance less purchase discount.…

Q: Swifty Corporation’s April 30 inventory was destroyed by fire. January 1 inventory was $159,400, and…

A: The cost of goods sold represents the total cost of the goods that are required in the production…

Q: A fire destroys all of the merchandise of Bonita Company on February 10, 2025. Presented below is…

A: Income statement is a financial statement that shows profitability, total revenue and total…

Q: Confucius Bookstore’s inventory is destroyed by a fire on September 5. The following data for the…

A:

Q: Vibrant Company had $1,000,000 of sales in each of Year 1, Year 2, and Year 3, and it purchased…

A: GROSS PROFIT   Gross Profit Is Computed by deducting Total Direct expenses from Total Sales. Or By…

Q: Scotland Inc. incurred a fire loss. Select information follows:   Gross profit: Markup on cost…

A: The gross profit method is the method that helps in estimating the value of inventory considering…

Q: Tamarisk Company lost most of its inventory in a fire in December just before the year-end physical…

A: Inventory loss due to fire refers to the reduction in the recorded value of merchandise destroyed by…

Q: A flood destroyed a company's warehouse contents on September 12. The following information was the…

A: The formual for ending inventory is as follows:

Q: The following information is available for July for Aluminum Company. Beginning inventory Net…

A: Ending Inventory = Beginning Inventory + Purchases - Cost of goods sold   Cost of goods sold =…

Q: On January 20, 2020, Stewart Company’s records revealed the following information: Inventory, July…

A: Inventory shows the current assets reported in the balance sheet.

Q: Vibrant Company had $850,000 of sales in each of Year 1, Year 2, and Year 3, and it purchased…

A:

Q: mation is available:   Sales, January 1 through July 8 $ 700,000 Inventory, January 1 130,000…

A: The ending inventory is calculated as difference between cost of goods available for sale and cost…

Q: What amount should Stallman report as its December 31, intentory?

A:

Q: Blue Spruce Corporation's March 31 inventory was destroyed by fire. January 1 inventory was…

A: We assume that all the inventory of 31 March was destryed by the fire.

Q: Vibrant Company had $1,000,000 of sales in each of Year 1, Year 2, and Year 3, and it purchased…

A: Determination of gross profit and preparation of comparative income statement are as follows

Q: The following information is available for October for Sheridan Company: Beginning inventory Net…

A: Value of ending inventory is the difference between cost of goods available for sale and cost of…

Q: Vibrant Company had $950,000 of sales in each of Year 1, Year 2, and Year 3, and it purchased…

A: The gross profit is calculated as difference between sales and cost of goods sold. Cost of goods…

Q: Wildhorse Company reported the following information for November and December 2022.     November…

A: Cost of goods sold = Beginning inventory + Cost of goods purchased - Ending inventory…

Q: Required: Calculate the amount of the insurance claim to be filed for the inventory destroyed in the…

A: The company takes the insurance policy on the inventory to protect the loss from the inventory…

Q: he following information is available for October for Pharoah Company. (Round answers to 0 decimal…

A: solution: given Beginning inventory $320000 Net purchases 1040000 Net sales…

Q: A fire completely destroyed all the inventory of Glisan Lumber Yard on August 5, 20- -. Fortunately,…

A: Gross profit = sales * gross profit percentage

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.