Exercise 9-17

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

Inventory July 1	$38,200
Purchases goods placed in stock July 1-15	80,300
Sale revenue goods delivered to customers (gross)	124,800
Sales return goods returned to stock	4,400

Your client reports that the goods on hand on July16 cost $29,400, but you determine that this figure includes goods of $5,500 received on a consignment basis. Your past records show that sales are made at approximately 30% over cost. duncan's insurance covers only goods owned.

Claim against the insurance company $__________