On June 13, 20X8, a fire completely destroyed all the inventory of Salmon Lumber Company. Fortunately, the books were not destroyed in the fire. The following information is taken from the books of Salmon Lumber Company for the period January 1, 20X8 through June 13, 20X8. Beginning Inventory, January 1, 20X8 Net Purchases, January 1 through June 13, 20X8 Net Sales, January 1 through June 13, 20X8 Normal gross profit percentage of sales $450,000 $200,000 $350,000 40% The estimated merchandise inventory destroyed in the fire on June 13, 2014, using the gross profit method is:
On June 13, 20X8, a fire completely destroyed all the inventory of Salmon Lumber Company. Fortunately, the books were not destroyed in the fire. The following information is taken from the books of Salmon Lumber Company for the period January 1, 20X8 through June 13, 20X8. Beginning Inventory, January 1, 20X8 Net Purchases, January 1 through June 13, 20X8 Net Sales, January 1 through June 13, 20X8 Normal gross profit percentage of sales $450,000 $200,000 $350,000 40% The estimated merchandise inventory destroyed in the fire on June 13, 2014, using the gross profit method is:
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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Transcribed Image Text:On June 13, 20X8, a fire completely destroyed all the inventory of Salmon Lumber Company. Fortunately, the books were not destroyed in the
fire. The following information is taken from the books of Salmon Lumber Company for the period January 1, 20X8 through June 13, 20X8.
Beginning Inventory, January 1, 20X8
Net Purchases, January 1 through June 13, 20X8
Net Sales, January 1 through June 13, 20X8
Normal gross profit percentage of sales
$450,000
$200,000
$350,000
40%
The estimated merchandise inventory destroyed in the fire on June 13, 2014, using the gross profit method is:
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