On June 19, 20X0, a fire destroyed the entire uninsured merchandise inventory of the ABC Merchandising Company. The following data are available: Inventory, January 1 - P 90,000 Purchases, January 1 through June 19 - 660,000 Sales, January 1 through June 19 - 876,000 Sales discount – 6,000 Markup percentage on cost - 20% What is the approximate inventory loss as a result of the fire? PS. I answered 25,000 and it is wrong.
On June 19, 20X0, a fire destroyed the entire uninsured merchandise inventory of the ABC Merchandising Company. The following data are available: Inventory, January 1 - P 90,000 Purchases, January 1 through June 19 - 660,000 Sales, January 1 through June 19 - 876,000 Sales discount – 6,000 Markup percentage on cost - 20% What is the approximate inventory loss as a result of the fire? PS. I answered 25,000 and it is wrong.
Chapter18: Accounting Periods And Methods
Section: Chapter Questions
Problem 67P
Related questions
Question
100%
On June 19, 20X0, a fire destroyed the entire uninsured merchandise inventory of the ABC Merchandising Company. The following data are available:
Inventory, January 1 - P 90,000
Purchases, January 1 through June 19 - 660,000
Sales, January 1 through June 19 - 876,000
Sales discount – 6,000
Markup percentage on cost - 20%
What is the approximate inventory loss as a result of the fire?
PS. I answered 25,000 and it is wrong.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,