Question
A flood destroyed a company's warehouse contents on September 12. The following information was the only information that was salvaged: 1. Inventory, beginning: $28,600. 2.
A flood destroyed a company's warehouse contents on September 12. The following information was the only information that was salvaged:
1. Inventory, beginning: $28,600.
2. Purchases for the period: $17,000.
3. Sales for the period: $55,000.
4. Sales returns for the period: $700.
The company's average gross profit ratio is 35%. What is the estimated cost of the lost inventory?
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Net sales for the periodSalesSales returns 5500070054300 Cost of goods av...
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Fundamental Managerial Accounting Concepts
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Old
7th edition
978-0077632427, 77632427, 78025656, 978-0078025655
