1On December 31, 2020, the entire inventory of Golf Town Corp. was destroyed by a flood. Sales...
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Question:
1On December 31, 2020, the entire inventory of Golf Town Corp. was destroyed by a flood. Sales and purchases for the year had been $2.2 million and $.8 million, respectively. The beginning inventory (Jan. 1, 2020) was $470,000. In the past, Clementine's gross profit has averaged 40%. Clementine uses the periodic inventory system.
Instructions
a. Calculate the estimated cost of inventory destroyed.
b. Prepare journal entries at December 31, 2020 to close the sales and related cost of goods sold accounts.
Related Book For
Fundamentals Of Taxation 2015
ISBN: 9781259293092
8th Edition
Authors: Ana Cruz, Michael Deschamps, Frederick Niswander, Debra Prendergast, Dan Schisler, Jinhee Trone
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