Question
Confucius Bookstore's inventory is destroyed by a fire on September 5. The following data for the current year are available from the accounting records. Beginning
Confucius Bookstore's inventory is destroyed by a fire on September 5. The following data for the current year are available from the accounting records.
| Beginning inventory, January 1 | $ 180,000 |
|---|---|
| January 1 through September 5 purchases (net) | $ 396,000 |
| January 1 through September 5 sales (net) | $ 792,000 |
| Current year's estimated gross profit rate | 50% |
Estimate the cost of the inventory destroyed.
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Intermediate Accounting
Authors: James D. Stice, Earl K. Stice, Fred Skousen
17th Edition
032459237X, 978-0324592375
