Swifty Company lost most of its inventory in a fire in December just before the year-end physical inventory was taken. The corporationâs books disclosed the following.
Beginning inventory $156,000 Sales revenue $621,700 Purchases for the year 380,100 Sales returns 23,800 Purchase returns 30,100 Rate of gross profit on net sales 40 %
Merchandise with a selling price of $22,800 remained undamaged after the fire. Damaged merchandise with an original selling price of $16,000 had a net realizable value of $5,200.
Compute the amount of the loss as a result of the fire, assuming that the corporation had no insurance coverage
Amount of the loss__________
Swifty Company lost most of its inventory in a fire in December just before the year-end physical inventory was taken. The corporationâs books disclosed the following.
| Beginning inventory | $156,000 | Sales revenue | $621,700 | ||||
| Purchases for the year | 380,100 | Sales returns | 23,800 | ||||
| Purchase returns | 30,100 | Rate of gross profit on net sales | 40 | % |
Merchandise with a selling price of $22,800 remained undamaged after the fire. Damaged merchandise with an original selling price of $16,000 had a net realizable value of $5,200.
Compute the amount of the loss as a result of the fire, assuming that the corporation had no insurance coverage
Amount of the loss__________
Related questions
Martinez 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.
1. Compute the amount of inventory fire loss. (Do not use the retail inventory method.)
