Over the past 4 years the gross profit rate for Davidson Company was 26%. Last week a

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Over the past 4 years the gross profit rate for Davidson Company was 26%. Last week a fire destroyed all of Davidson’s inventory. Luckily, all the records for Davidson were in a fireproof safe and indicated the following facts:

Inventory (Januray 1, 201X)

$39,100

Sales

128,500

Sales Returns

3,200

Purchases

77,900

Purchases Returns and Allowances

2,200


Estimate the cost of inventory that was lost in the fire.

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College Accounting A Practical Approach

ISBN: 9780134729312

14th Edition

Authors: Jeffrey Slater, Mike Deschamps

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