Nash 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 year Purchase returns Amount of the loss $164,700 $ 415,300 27,700 Sales revenue Sales returns Rate of gross profit on net sales $677,100 23,500 Merchandise with a selling price of $19.100 remained undamaged after the fire. Damaged merchandise with an original selling price of $13,800 had a net realizable value of $5,300. Compute the amount of the loss as a result of the fire, assuming that the corporation had no insurance coverage. 30 %
Nash 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 year Purchase returns Amount of the loss $164,700 $ 415,300 27,700 Sales revenue Sales returns Rate of gross profit on net sales $677,100 23,500 Merchandise with a selling price of $19.100 remained undamaged after the fire. Damaged merchandise with an original selling price of $13,800 had a net realizable value of $5,300. Compute the amount of the loss as a result of the fire, assuming that the corporation had no insurance coverage. 30 %
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 71APSA: Effects of an Inventory Error The income statements for Graul Corporation for the 3 years ending in...
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