Ine Toirowing inormation appears in Pety Company s recoras for ue year ended December 31: Inventory, January 1 Purchases Purchase returns Freight in Sales Sales discounts Sales returns $325,000 1,150,000 40,000 30,000 1,700,000 10,000 15,000 On December 31, a physical inventory revealed that the ending inventory was only $210,000. Petty's gross profit on net sales has remained constant at 30 percent in recent years. Petty suspects that some inventory may have been stolen by one of the company's employees. At December 31, what is the estimated cost of the missing inventorv?
Ine Toirowing inormation appears in Pety Company s recoras for ue year ended December 31: Inventory, January 1 Purchases Purchase returns Freight in Sales Sales discounts Sales returns $325,000 1,150,000 40,000 30,000 1,700,000 10,000 15,000 On December 31, a physical inventory revealed that the ending inventory was only $210,000. Petty's gross profit on net sales has remained constant at 30 percent in recent years. Petty suspects that some inventory may have been stolen by one of the company's employees. At December 31, what is the estimated cost of the missing inventorv?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 14RE: On January 1 of Year 1, Dorso Company adopted the dollar-value LIFO method of inventory costing....
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