On July 5, 2006, a fire destroyed the entire inventory of Kinard Music Mart. The following information

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On July 5, 2006, a fire destroyed the entire inventory of Kinard Music Mart. The following information is available from its accounting records:

Inventory, January 1, 2006 .....................$211,000

Purchases, Jan 1- July 5 ............................500,000

Sales, Jan 1 - July 5 ..................................900,000

Normal Gross Margin.....................................30%

Required:

Compute the estimated cost of inventory lost in the fire.

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Intermediate Accounting Reporting and Analysis

ISBN: 978-1285453828

2nd edition

Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach

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Question Posted: May 06, 2013 05:32 AM

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On July 5, 2006, a fire destroyed the entire inventory of Kinard Music Mart. The following information

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Computation of Ending Inventory Fire destroyes Partic...View the full answer

Intermediate Accounting Reporting and Analysis

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