On September 28, 2013, a fire destroyed the entire merchandise inventory of Carroll Corporation. The following information

Question:

On September 28, 2013, a fire destroyed the entire merchandise inventory of Carroll Corporation. The following information is available:

Sales, January 1-September 28, 2013............................$540,000

Inventory, January 1, 2013.........................................$150,000

Merchandise purchases, January 1-September 28, 2013

(Including $60,000 of goods in transit on September 28,

2013, shipped FOB shipping point)...............................$465,000

Markup percentage on cost...............................................20%

Required:

What is the estimated inventory on September 28, 2013, immediately prior to the fire?

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Related Book For  book-img-for-question

Intermediate Accounting Reporting and Analysis

ISBN: 978-1111822361

1st edition

Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach

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