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A fire destroyed the Churchill Company's warehouse on March 15, 2014. Only goods with a normal selling price of $12,500 and a net realizable value
A fire destroyed the Churchill Company's warehouse on March 15, 2014. Only goods with a normal selling price of $12,500 and a net realizable value of $5,000 were saved. The following information is available from the company's records:
Inventory in warehouse, 1/1/14 | $250,000 |
Purchases, 1/1/14-3/15/14 | 620,000 |
Purchase returns | 9,500 |
Freight-in | 14,000 |
Sales, 1/1/13-3/15/14 | 850,000 |
Sales returns | 20,000 |
For the period from 2009 through 2013, Churchill had a gross profit of $2,100,000 on net sales of $6,000,000.
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Estimate Churchill
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