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Suzuki Company lost all of its inventory in a fire on December 26, 2015. The accounting records showed the following gross profit data for November
Suzuki Company lost all of its inventory in a fire on December 26, 2015. The accounting records showed the following gross profit data for November and December.
November December (to 12/26)
Net sales $597,424 $690,900
Beginning inventory 31,200 35,800
Purchases 388,200 423,800
Purchase returns and allowances 13,000 14,500
Purchase discounts 8,200 9,200
Freight-in 8,600 9,600
Ending inventory 35,800 ?
Suzuki is fully insured for fire losses but must prepare a report for the insurance company.
Compute the gross profit rate for November.
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