Skysong Company lost most of its inventory in a fire in December just before the year-end...
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Skysong Company lost most of its inventory in a fire in December just before the year-end physical inventory was taken. Corporate records disclose the following. Inventory (beginning) $81,100 Sales revenue $418,600 Purchases 286,900 Sales returns 21,200 Purchase returns 27,700 Gross profit % based on net selling price 38 Merchandise with a selling price of $30,500 remained undamaged after the fire, and damaged merchandise has a net realizable value of $7,500. The company does not carry fire insurance on its inventory. Compute the amount of inventory fire loss. (Do not use the retail inventory method.) Inventory fire loss $ Skysong Company lost most of its inventory in a fire in December just before the year-end physical inventory was taken. Corporate records disclose the following. Inventory (beginning) $81,100 Sales revenue $418,600 Purchases 286,900 Sales returns 21,200 Purchase returns 27,700 Gross profit % based on net selling price 38 Merchandise with a selling price of $30,500 remained undamaged after the fire, and damaged merchandise has a net realizable value of $7,500. The company does not carry fire insurance on its inventory. Compute the amount of inventory fire loss. (Do not use the retail inventory method.) Inventory fire loss $
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