Question 1 Ivanhoe Company lost most of its inventory in a fire in December just

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Question 1 Ivanhoe 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 Purchases for the ye Purchase returns $172,400 Sales revenue 406,400 Sales returns $621,100 22,800 27,100 Rate of gross profit on net sales 30 % Merchandise with a selling price of $21,300 remained undamaged after the fire. Damaged merchandise with an original selling price of $14,600 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 Question Attempts: o of S5 used SAVE FOR LATER SUBMIT ANSWER SUBMIT ANSWER

Explanation / Answer

Beginning inventory 172400 Add: Purchases 406400 Less: Purchase return -27100 Cost of goods available 551700 Less: Sales revenue 621100 Less: Sales return -22800 Net sales 598300 Less: Gross profit 179490 Cost of goods sold 418810 Inventory left 132890 Less: Goods undamaged 21300 Less: Net realizable value of goods 5200 Amount of the loss 106390

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