On September 28, 2007 a fire destroyed the entire merchandise inventory of the Carroll Corporation. The following

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On September 28, 2007 a fire destroyed the entire merchandise inventory of the Carroll Corporation. The following information is available:

Sales, January 1—September 28, 2007 .......$540,000

Inventory, January 1, 2007 .............$150,000

Merchandise purchases, January 1—September 28, 2007

(including $60,000 of goods in transit on September 28,

2007, shipped FOB shipping point) ........$465,000

Markup percentage on cost ............ 20%

Required

What is the estimated inventory on September 28, 2007 immediately prior to the fire?

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Intermediate Accounting

ISBN: 978-0324300987

10th Edition

Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones

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Question Posted: Mar 10, 2012 06:17 AM

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On September 28, 2007 a fire destroyed the entire merchandise inventory of the Carroll Corporation. The following

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Beginning inventory 150000 Purchases on hand 465000 60000 in tr...View the full answer

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