Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Blossom Company handles three principal lines of merchandise with these varying rates of gross profit on cost. Furniture 25% Beds 30% Rugs 50% On September

image text in transcribed

Blossom Company handles three principal lines of merchandise with these varying rates of gross profit on cost. Furniture 25% Beds 30% Rugs 50% On September 9, a fire destroyed the office and the warehouse. To file a report of loss for insurance purposes, the company must know what the inventories were immediately preceding the fire. No detail or perpetual inventory records of any kind were maintained. The only pertinent information you are able to obtain are the following facts from the general ledger, which was kept in a fireproof vault and thus escaped destruction. Furniture Beds Rugs Inventory, Jan. 1, 2017 $ 80,000 $ 114,000 $ 232,000 Purchases to Sep. 9, 2017 860,000 606,000 307,000 Sales to Sep. 9, 2017 607,000 695,500 661,500 Submit your estimate of the inventory amounts immediately preceding the fire. (Round ratios for computational purposes to 5 decimal places, e.g. 78.74265% and final answers to 0 decimal places, e.g. 28,987.) Furniture Beds Rugs Inventory $ $ $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting And Finance For Lawyers In A Nutshell

Authors: Charles Meyer

7th Edition

1647083001, 9781647083007

More Books

Students also viewed these Accounting questions

Question

List four examples of customer acceptance measures.

Answered: 1 week ago

Question

Is it easier to adjust goals upward or downward? Explain.

Answered: 1 week ago