Wiley 8-10

Concord Corp. 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 Purchases for the year Purchase returns $390,000 Sales 800,000 Sales returns 65,000 Gross margin on sales 49,000 42% Merchandise with a selling price of $38,000 remained undamaged after the fire. Damaged merchandise with an original selling price of $27,000 had a net realizable value of $11,600. Calculate the amount lost because of the fire, assuming that the corporation had no insurance coverage. Loss of inventory due to fire $ Prepare the journal entry to record the loss and account for the damaged inventory in a separate Damaged Inventory account. In the same entry, record cost of goods sold for the year ended December 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Account Titles and Explanation Debit Credit Concord Corp. 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 Purchases for the year Purchase returns $390,000 Sales 800,000 Sales returns 65,000 Gross margin on sales 49,000 42% Merchandise with a selling price of $38,000 remained undamaged after the fire. Damaged merchandise with an original selling price of $27,000 had a net realizable value of $11,600. Calculate the amount lost because of the fire, assuming that the corporation had no insurance coverage. Loss of inventory due to fire $ Prepare the journal entry to record the loss and account for the damaged inventory in a separate Damaged Inventory account. In the same entry, record cost of goods sold for the year ended December 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Account Titles and Explanation Debit Credit