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An inventory taken the morning after a large theft discloses $60,000 of goods on hand as of March 12. The following additional data is available
An inventory taken the morning after a large theft discloses $60,000 of goods on hand as of
March 12. The following additional data is available from the books:
Inventory on hand, March 1 $ 84,000
Purchases received, March 1 11 63,000
Sales (goods delivered to customers) 105,000
Past records indicate that sales are made at a 40% gross profit.
Estimate the inventory of goods on hand at the close of business on March 11 by the gross profit method a) $__________ and determine the amount of the theft loss b) $__________.
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