On April 15, 2021, fire damaged the office and warehouse of Splish Corporation. The only accounting record saved was the general ledger, from which the balance sheet data below was prepared. $40,189 SPLISH CORPORATION MARCH 31, 2021 Cash $21,130 Accounts receivable 43,910 Inventory, December 31, 2020 69,020 Land 33,550 Buildings 110,370 Accumulated depreciation Equipment 3,848 Accounts payable Other accrued expenses Common stock Retained earnings Sales revenue Purchases 48,130 Miscellaneous expense 25,404 $355,362 24,887 2,706 99,400 48,130 140,050 $355,362 The following data and information have been gathered. 1. The fiscal year of the corporation ends on December 31. 2. An examination of the April bank statement and canceled checks revealed that checks written during the period April 1-15 totaled $13,410: $6,150 paid to accounts payable as of March 31, $3,595 for April merchandise shipments, and $4,219 paid for other expenses. Deposits during the same period amounted to $12,374, which consisted of receipts on account from customers with the exception of a $937 refund from a vendor for merchandise returned in April. 3. Correspondence with suppliers revealed unrecorded obligations at April 15 of $14,760 for April merchandise shipments, including $2,147 for shipments in transit (f.o.b. destination) on that date. 4. Customers acknowledged indebtedness of $42,090 at April 15, 2021. It was also estimated that customers owed another $7,330 that will never be acknowledged or recovered. Of the acknowledged indebtedness, $546 will probably be uncollectible. 5. The companies insuring the inventory agreed that the corporation's fire-loss claim should be based on the assumption that the overall gross profit rate for the past 2 years was in effect during the current year. The corporation's audited financial statements disclosed this information: Net sales Net purchases Beginning inventory Ending inventory Year Ended December 31 2020 2019 $492,930 $366,110 259,130 248,030 47,600 63,260 69,020 47,600 6. Inventory with a cost of $7,420 was salvaged and sold for $3,220. The balance of the inventory was a total loss. Compute the amount of inventory fire loss. (Round ratios for computational purposes to 2 decimal places, e.g 78.52% and final answer to 0 decimal places, e.g. 28,987.) Inventory fire losss LINK TO TEXT On April 15, 2021, fire damaged the office and warehouse of Splish Corporation. The only accounting record saved was the general ledger, from which the balance sheet data below was prepared. $40,189 SPLISH CORPORATION MARCH 31, 2021 Cash $21,130 Accounts receivable 43,910 Inventory, December 31, 2020 69,020 Land 33,550 Buildings 110,370 Accumulated depreciation Equipment 3,848 Accounts payable Other accrued expenses Common stock Retained earnings Sales revenue Purchases 48,130 Miscellaneous expense 25,404 $355,362 24,887 2,706 99,400 48,130 140,050 $355,362 The following data and information have been gathered. 1. The fiscal year of the corporation ends on December 31. 2. An examination of the April bank statement and canceled checks revealed that checks written during the period April 1-15 totaled $13,410: $6,150 paid to accounts payable as of March 31, $3,595 for April merchandise shipments, and $4,219 paid for other expenses. Deposits during the same period amounted to $12,374, which consisted of receipts on account from customers with the exception of a $937 refund from a vendor for merchandise returned in April. 3. Correspondence with suppliers revealed unrecorded obligations at April 15 of $14,760 for April merchandise shipments, including $2,147 for shipments in transit (f.o.b. destination) on that date. 4. Customers acknowledged indebtedness of $42,090 at April 15, 2021. It was also estimated that customers owed another $7,330 that will never be acknowledged or recovered. Of the acknowledged indebtedness, $546 will probably be uncollectible. 5. The companies insuring the inventory agreed that the corporation's fire-loss claim should be based on the assumption that the overall gross profit rate for the past 2 years was in effect during the current year. The corporation's audited financial statements disclosed this information: Net sales Net purchases Beginning inventory Ending inventory Year Ended December 31 2020 2019 $492,930 $366,110 259,130 248,030 47,600 63,260 69,020 47,600 6. Inventory with a cost of $7,420 was salvaged and sold for $3,220. The balance of the inventory was a total loss. Compute the amount of inventory fire loss. (Round ratios for computational purposes to 2 decimal places, e.g 78.52% and final answer to 0 decimal places, e.g. 28,987.) Inventory fire losss LINK TO TEXT
