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You are called by Tim Duncan of Monty Co. on July 16 and asked to prepare a claim for insurance as a result of a theft that took place the night before. You suggest that an inventory be taken immediately. The following data are available. Inventory, July 1 Purchases-goods placed in stock July 1-15 Sales revenue-goods delivered to customers (gross) Sales returns-goods returned to stock $35,000 Claim against the insurance company 83,000 $ 105,000 Your client reports that the goods on hand on July 16 cost $29,600, but you determine that this figure includes goods of $5,900 received on a consignment basis. Your past records show that sales are made at approximately 25% over cost. Duncan's insurance covers only goods owned. 4,100 Compute the claim against the insurance company. (Round ratios for computational purposes to 3 decimal places, e.g. 78.736% and final answer to O decimal places, e.g. 28,987.)

You are called by Tim Duncan of Monty Co. on July 16 and asked to prepare a claim for insurance as a result of a theft that took place the night before. You suggest that an inventory be taken immediately. The following data are available. Inventory, July 1 Purchases-goods placed in stock July 1-15 Sales revenue-goods delivered to customers (gross) Sales returns-goods returned to stock $35,000 Claim against the insurance company 83,000 $ 105,000 Your client reports that the goods on hand on July 16 cost $29,600, but you determine that this figure includes goods of $5,900 received on a consignment basis. Your past records show that sales are made at approximately 25% over cost. Duncan's insurance covers only goods owned. 4,100 Compute the claim against the insurance company. (Round ratios for computational purposes to 3 decimal places, e.g. 78.736% and final answer to O decimal places, e.g. 28,987.)

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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You are called by Tim Duncan of Monty Co. on July 16 and asked to prepare a claim for insurance as a result of a theft that took place the night before. You suggest that an inventory be taken immediately. The following data are available. Inventory, July 1 Purchases-goods placed in stock July 1-15 Sales revenue-goods delivered to customers (gross) Sales returns-goods returned to stock $35,000 Claim against the insurance company 83,000 $ 105,000 Your client reports that the goods on hand on July 16 cost $29,600, but you determine that this figure includes goods of $5,900 received on a consignment basis. Your past records show that sales are made at approximately 25% over cost. Duncan's insurance covers only goods owned. 4,100 Compute the claim against the insurance company. (Round ratios for computational purposes to 3 decimal places, e.g. 78.736% and final answer to 0 decimal places, e.g. 28,987.)
Transcribed Image Text:You are called by Tim Duncan of Monty Co. on July 16 and asked to prepare a claim for insurance as a result of a theft that took place the night before. You suggest that an inventory be taken immediately. The following data are available. Inventory, July 1 Purchases-goods placed in stock July 1-15 Sales revenue-goods delivered to customers (gross) Sales returns-goods returned to stock $35,000 Claim against the insurance company 83,000 $ 105,000 Your client reports that the goods on hand on July 16 cost $29,600, but you determine that this figure includes goods of $5,900 received on a consignment basis. Your past records show that sales are made at approximately 25% over cost. Duncan's insurance covers only goods owned. 4,100 Compute the claim against the insurance company. (Round ratios for computational purposes to 3 decimal places, e.g. 78.736% and final answer to 0 decimal places, e.g. 28,987.)
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