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Hello! Please help me solve this & I will leave a rating :D , thank you. On April 1 5 , 2 0 2 6
Hello! Please help me solve this & I will leave a rating :D thank you.
On April fire damaged the office and warehouse of Buffalo Corporation. The only accounting record saved was the general The following data and information have been gathered.
The fiscal year of the corporation ends on December
An examination of the April bank statement and canceled checks revealed that checks written during the period April
totaled $ : $ paid to accounts payable as of March $ for April merchandise shipments, and $ paid
for other expenses. Deposits during the same period amounted to $ which consisted of receipts on account from
customers with the exception of a $ refund from a vendor for merchandise returned in April.
Correspondence with suppliers revealed unrecorded obligations at April of $ for April merchandise shipments,
including $ for shipments in transit fob shipping point on that date.
Customers acknowledged indebtedness of $ at April It was also estimated that customers owed another
$ that will never be acknowledged or recovered. Of the acknowledged indebtedness, $ will probably be
uncollectible.
The companies insuring the inventory agreed that the corporation's fireloss claim should be based on the assumption that the
overall gross profit rate for the past years was in effect during the current year. The corporation's audited financial
statements disclosed this information:
Inventory with a cost of $ was salvaged and sold for $ The balance of the inventory was a total loss.
Compute the amount of inventory fire loss.
Inventory fire loss $
ledger, from which the balance sheet data below was prepared.
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