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Exercise 9-16 Your answer is incorrect. Try again. Wallace Company lost most of its inventory in a fire in December just before the year-end
Exercise 9-16 Your answer is incorrect. Try again. Wallace Company lost most of its inventory in a fire in December just before the year-end physical inventory was taken. The corporation's books disclosed the following. Beginning inventory $170,000 Sales revenue $650,000 Purchases for the year Purchase returns 390,000 Sales returns 24,000 30,000 Rate of gross profit on net sales 40 % Merchandise with a selling price of $21,000 remained undamaged after the fire. Damaged merchandise with an original selling price of $15,000 had a net realizable value of $5,300. Compute the amount of the loss as a result of the fire, assuming that the corporation had no insurance coverage.
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To calculate the amount of the loss due to the fire follow these steps Step 1 Calculate Net Sales Ne...Get Instant Access to Expert-Tailored Solutions
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