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Howard Supply co suffered a fire loss on April 20, 2011. The companys last physical inventory was taken on January 30, 2011 at which time
Howard Supply co suffered a fire loss on April 20, 2011. The companys last physical inventory was taken on January 30, 2011 at which time the inventory totaled 220,000. Sales from Jan 30 to April 20 were $600,000 and purchases during that time were $450,000. Howards consistently reports a 30% gross profit. The estimated inventory loss is
a. 490,000
b 238,000
c 250,000
d none
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