Gross Profit Method A fire completely destroyed all the inventory of Glisan Lumber Yard on August 5, 20--. Fortunately, the accounting records were not destroyed in the fire. The following information is provided by Glisan Lumber Yard for the time period January 1 through August 5: Beginning inventory, January 1, 20-- $98,000 Net purchases, January 1 through August 5 426,000 Net sales, January 1 through August 5 721,000 Normal gross profit as a percentage of sales 40% Required: Estimate the amount of merchandise inventory destroyed in the fire on August 5 using the gross profit method $_____
Gross Profit Method A fire completely destroyed all the inventory of Glisan Lumber Yard on August 5, 20--. Fortunately, the accounting records were not destroyed in the fire. The following information is provided by Glisan Lumber Yard for the time period January 1 through August 5: Beginning inventory, January 1, 20-- $98,000 Net purchases, January 1 through August 5 426,000 Net sales, January 1 through August 5 721,000 Normal gross profit as a percentage of sales 40% Required: Estimate the amount of merchandise inventory destroyed in the fire on August 5 using the gross profit method $_____
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 fire completely destroyed all the inventory of Glisan Lumber Yard on August 5, 20--. Fortunately, the accounting records were not destroyed in the fire. The following information is provided by Glisan Lumber Yard for the time period January 1 through August 5:
Beginning inventory, January 1, 20-- | $98,000 | |
Net purchases, January 1 through August 5 | 426,000 | |
Net sales, January 1 through August 5 | 721,000 | |
Normal gross profit as a percentage of sales | 40% |
Required:
Estimate the amount of merchandise inventory destroyed in the fire on August 5 using the gross profit method
$_____
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