Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Gross Profit Method: Estimation of Fire Loss On September 28, 2016, a fire destroyed the entire merchandise inventory of Carroll Corporation. The following information is

Gross Profit Method: Estimation of Fire Loss

On September 28, 2016, a fire destroyed the entire merchandise inventory of Carroll Corporation. The following information is available:

Sales, January 1September 28, 2016 $560,000
Inventory, January 1, 2016 $150,000
Merchandise purchases, January 1September 28, 2016 (including $50,000 of goods in transit on September 28, 2016, shipped FOB shipping point) $476,000
Markup percentage on cost 25%

Required:

What is the estimated inventory on September 28, 2016, immediately prior to the fire?

CARROLL CORPORATION
Calculation of estimated inventory on
September 28, 2016 (prior to the fire)
Beginning inventory $
Purchases on hand
Cost of goods available for sale $
Less: Cost of goods sold
Inventory on hand September 28, 2016, and destroyed by the fire $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Practical Guide To Accountancy

Authors: Ajit Kumar Chattopadhyay, Amalendu Mukhopadhyay

1st Edition

1642874264, 9781642874266

More Books

Students also viewed these Accounting questions