AS SOON AS POSSIBLE

Question 4 (10 points) Gulf Corp. had a robbery in which a large amount of inventory was taken. The loss is totally covered by insurance. A physical inventory count determined that the cost of the remaining merchandise is $156,500. The following additional information is available: At Retail At Cost Opening merchandise inventory 480,000 300,000 Purchase returns and allowances 8,320 5,200 Purchases 656,000 410,000 Sales 740,380 Sales returns 4,700 a) Prepare an estimate of ending merchandise inventory using the retail method: At Retail At Cost Cost of Goods Sold: Opening inventory Net purchases Cost of goods available for sale Estimated ending inventory Cost of goods sold b) Calculate the cost of the inventory that was stolen: Cost of stolen merchandise =