Computation of gross profit rate below
On July 15,2026 , fire damaged the office and warehouse of Culver Corporation. The only accounting record saved was the general ledger, from which the following trial balance was prepared: The following data and information have been gathered. 1. The fiscal year of the corporation ends on December 31. 2. An examination of the July bank statement and canceled checks revealed that checks written during the period July 115 totaled $60,000:$48,700 paid to accounts payable as of June 30,$2,800 for July merchandise shipments, and $4,600 paid for other expenses. Deposits during the same period amounted to $70,000, which consisted of receipts on account from customers with the exception of a $1,500 refund from a vendor for merchandise returned in July. 3. Correspondence with suppliers revealed unrecorded obligations at July 15 of $27,400 for July merchandise shipments, including $1,580 for shipments in transit (f.o.b. shipping point) on that date. 4. Customers acknowledged indebtedness of $160,200 at July 15,2026 . It was also estimated that customers owed another $11,300 that will never be acknowledged or recovered. Of the acknowledged indebtedness, $2,000 will probably be uncollectible. 5. The companies insuring the inventory agreed that the corporation's fire-loss claim should be based on the assumption that the overall gross profit rate for the past 2 years was in effect during the current year. The corporation's audited financial: statements disclosed this information: The companies insuring the inventory agreed that the corporation's fire-loss claim should be based on the assumption that the overall gross profit rate for the past 2 years was in effect during the current year. The corporation's audited financial statements disclosed this information: 6. Inventory with a cost of $10,200 was salivaged and sold for $3,000. The balance of the inventory was a total loss. Complete the schedule computing the gross profit and the schectule to determine the amount of inventory fire loss. (Round ratios for computational purposes to 0 decimal ploces, es 78% and final answer to 0 decimal places, es. 28,987.j CULVER CORPORATION Computation of Inventory Fire Loss Inventory, 1/1/26 Purchases, 1/1/266/30/26 July merchandise shipments paid Unrecorded purchases on account Total Less: Shipments in transit 5 Merchandise returned Merchandise available for sale Less estimated cost of sales: Sales,1/1/266/30/26 Sales,7/1/26-7/15/26 Receivables acknowledged at 7/15/26 Estimated receivables not acknowledged Total Add collections, 7/1/26 - 7/15/26 Total Less recelvables, 6/30/26 Total sales 1/1/26 - 7/15/26 Less gross profit Cost of Goods Sold Less gross profit Cost of Goods Sold Estimated merchandise inventory Less: Sale of salvaged inventory Inventory fire loss Gross Profit: $ On July 15,2026 , fire damaged the office and warehouse of Culver Corporation. The only accounting record saved was the general ledger, from which the following trial balance was prepared: The following data and information have been gathered. 1. The fiscal year of the corporation ends on December 31. 2. An examination of the July bank statement and canceled checks revealed that checks written during the period July 115 totaled $60,000:$48,700 paid to accounts payable as of June 30,$2,800 for July merchandise shipments, and $4,600 paid for other expenses. Deposits during the same period amounted to $70,000, which consisted of receipts on account from customers with the exception of a $1,500 refund from a vendor for merchandise returned in July. 3. Correspondence with suppliers revealed unrecorded obligations at July 15 of $27,400 for July merchandise shipments, including $1,580 for shipments in transit (f.o.b. shipping point) on that date. 4. Customers acknowledged indebtedness of $160,200 at July 15,2026 . It was also estimated that customers owed another $11,300 that will never be acknowledged or recovered. Of the acknowledged indebtedness, $2,000 will probably be uncollectible. 5. The companies insuring the inventory agreed that the corporation's fire-loss claim should be based on the assumption that the overall gross profit rate for the past 2 years was in effect during the current year. The corporation's audited financial: statements disclosed this information: The companies insuring the inventory agreed that the corporation's fire-loss claim should be based on the assumption that the overall gross profit rate for the past 2 years was in effect during the current year. The corporation's audited financial statements disclosed this information: 6. Inventory with a cost of $10,200 was salivaged and sold for $3,000. The balance of the inventory was a total loss. Complete the schedule computing the gross profit and the schectule to determine the amount of inventory fire loss. (Round ratios for computational purposes to 0 decimal ploces, es 78% and final answer to 0 decimal places, es. 28,987.j CULVER CORPORATION Computation of Inventory Fire Loss Inventory, 1/1/26 Purchases, 1/1/266/30/26 July merchandise shipments paid Unrecorded purchases on account Total Less: Shipments in transit 5 Merchandise returned Merchandise available for sale Less estimated cost of sales: Sales,1/1/266/30/26 Sales,7/1/26-7/15/26 Receivables acknowledged at 7/15/26 Estimated receivables not acknowledged Total Add collections, 7/1/26 - 7/15/26 Total Less recelvables, 6/30/26 Total sales 1/1/26 - 7/15/26 Less gross profit Cost of Goods Sold Less gross profit Cost of Goods Sold Estimated merchandise inventory Less: Sale of salvaged inventory Inventory fire loss Gross Profit: $
