Exercise 9-17

You are called by Tim Duncan of Crane Co. on July 16 and asked to prepare claim for insurance as a result of a theft that took place the night before. You suggest that an inventory be taken immediately. The following data are available.

Inventory, July 1

$35,600

Purchasesgoods placed in stock July 1-15

77,300

Sales revenuegoods delivered to customers (gross)

121,700

Sales returnsgoods returned to stock

3,900

Your client reports that the goods on hand on July 16 cost $30,100, but you determine that this figure includes goods of $6,400received on a consignment basis. Your past records show that sales are made at approximately 40% over cost. Duncan's insurance covers only goods owned.

Compute the claim against the insurance company.(Round ratios for computational purposes to 2 decimal places, e.g. 78.73% and final answer to 0 decimal places, e.g. 28,987.)

Claim against the insurance company $