Question
E9-26B (Gross Profit Method) Horton, Inc. suffered an inventory loss due to a flood. Beginning inventory $100,000 Net purchases 400,000 Sales 400,000 Inventory salvaged from
E9-26B (Gross Profit Method) Horton, Inc. suffered an inventory loss due to a flood.
Beginning inventory $100,000
Net purchases 400,000
Sales 400,000
Inventory salvaged from flood 50,000
Instructions Use the gross profit method for estimating inventory to determine the loss due to the flood, assuming (a) gross profit is 25% of sales, and (b) Gross profit is 25% of cost. (markup on cost)
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Accounting For Non-Accountants
Authors: David Horner
10th Edition
0749472812, 978-0749472818
