Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Intermediate accounting please help me 1 The following relevant information is extracted from Ajrnan Company's books for the year of 2019 Sales Revenue 1000,000 Sales

Intermediate accounting
please help me
image text in transcribed
1 The following relevant information is extracted from Ajrnan Company's books for the year of 2019 Sales Revenue 1000,000 Sales Returns 50,000 Purchases for the year 600,000 Purchases Returns 60,000 Purchases discounts 10,000 Opening Inventory 200,000 Rate of gross profit on net sales 30% Ajman Company found a large amount of its inventory is damaged and subsequently lost. However, the company identified a part of its inventory with a selling price of 30,000 remained undamaged. Further, some of damaged part with original selling price of 22,500 has a net realizable value of 8000. Required (a) Estimate the Ending inventory without any adjustment for damages. (6 Marks) (b) Estimate the undamaged inventory at cost (2 marks) (c) Calculate the loss of damaged Inventory (2 marks)

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

Accounting Information Systems Connecting Careers Systems And Analytics

Authors: Arline A. Savage, Danielle Brannock, Alicja Foksinska

1st Edition

1119744474, 9781119744474

More Books

Students also viewed these Accounting questions

Question

What are 10 ways to create a professional image with your letter?

Answered: 1 week ago

Question

20) How does ABC costing system help service companies

Answered: 1 week ago

Question

Appreciate the services that consultants provide

Answered: 1 week ago

Question

Know about the different kinds of consultants

Answered: 1 week ago