Gross Profit Method A flood completely destroyed all the inventory of Bayside Waterworks Company on July 1, 20--. Fortunately, the accounting records were not destroyed in the flood. T following information is provided by Bayside Waterworks for the time period January 1 through July 1, 20--: Beginning inventory, January 1, 20-- $60,000 Net purchases, January 1 through July 1 380,000 Net sales, January 1 through July 1 650,000 Normal gross profit as a percentage of sales 45% Required: Estimate the amount of merchandise inventory destroyed in the flood on July 1 using the gross profit method.

Gross Profit Method A flood completely destroyed all the inventory of Bayside Waterworks Company on July 1, 20--. Fortunately, the accounting records were not destroyed in the flood. T following information is provided by Bayside Waterworks for the time period January 1 through July 1, 20--: Beginning inventory, January 1, 20-- $60,000 Net purchases, January 1 through July 1 380,000 Net sales, January 1 through July 1 650,000 Normal gross profit as a percentage of sales 45% Required: Estimate the amount of merchandise inventory destroyed in the flood on July 1 using the gross profit method.

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Description: Gross Profit MethodA flood completely destroyed all the inventory of Bayside Waterworks Company on July 1, 20--. Fortunately, the accounting records were not destroyed in the flood. Thefollowing information is provided by Bayside Waterworks for the

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter20: Accounting For Inventory

Section: Chapter Questions

Problem 1CP

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Gross Profit Method A flood completely destroyed all the inventory of Bayside Waterworks Company on July 1, 20--. Fortunately, the accounting records were not destroyed in the flood. The following information is provided by Bayside Waterworks for the time period January 1 through July 1, 20--: Beginning inventory, January 1, 20-- $60,000 Net purchases, January 1 through July 1 380,000 Net sales, January 1 through July 1 650,000 Normal gross profit as a percentage of sales 45% Required: Estimate the amount of merchandise inventory destroyed in the flood on July 1 using the gross profit method.$fill in the blank 1
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