Kieso, Intermediate Accounting, 16e Hein I ALCRATOR PRINTER BACK Question 1 Your

Question

Kieso, Intermediate Accounting, 16e Hein I ALCRATOR PRINTER BACK Question 1 Your answer is incorrect. Try agan Indigo Company lost most of its inventory in a fire in December just before the year-end physical inventory was taken. The corparation's books disclosed the following. Beginning inventory Purchases for the year Purchase retu $168,500 412,700 30,100 Sales revenue Sales returns Rate of gross profit on net sales $628,200 25,600 20 % 0,300 remained undamaged after the fire. Damaged merchandise with an original selling price of $15,200 had a net realizable value Compute the amount of the loss as a result of the fire, assuming that the corporation had no insurance coverage. st-101580 Amount of the loss Question Attempts: 1 of 6 used

Explanation / Answer

Beginning inventory 168500 Add: Net purchases 382600 =412700-30100 Cost of goods available for sale 551100 Less: Cost of goods sold 482080 =(628200-25600)*(1-0.2) Goods on hand 69020 Less: Goods undamaged 16240 =20300*(1-0.2) Less: Net realizabe value 5200 Amount of the loss 47580

Related Questions

Navigate

• Browse (All)
• Browse K
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.