You are called by the CFO of Dolphin Co. on March 9 and asked to prepare a claim for insurance as a result of a theft that took place the night before. You suggest that an inventory be taken immediately. The follow- ing data are available.

Your client reports that the goods on hand on March 9 cost $24,000, but you determine that this figure includes goods of $7,000 received on a consignment basis. Your past records show that sales are made at approximately 20% over cost. Dolphins insur- ance covers only goods owned.

Instructions

Compute the claim against the insurance company.

Inventory, March 1 Purchases-goods placed in stock March 1-9 Sales-goods delivered to customers (gross) Sales returns-goods returned to stock $ 78,000 112,000 91,000 3,000