Question
Estimating Inventory Using Gross Profit Method Lin Co. sells its merchandise at a gross margin of 30% on sales. The following amounts pertain to Lins
Estimating Inventory Using Gross Profit Method
Lin Co. sells its merchandise at a gross margin of 30% on sales. The following amounts pertain to Lins operations for the six months ended June 30, 2020.
| Sales | $160,000 |
| Beginning inventory | 40,000 |
| Purchases | 104,000 |
On June 30, 2020, Lins inventory is destroyed by fire.
Compute the estimated cost of this destroyed inventory. $Answer
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Valuation For Accountants A Short Course Based On IFRS
Authors: Stephen Lynn
1st Edition
9811503567, 9789811503566
