Speaker Shop sells and installs audio equipment. During a recent fire that occurred at its warehouse, Speaker
Question:
Speaker Shop sells and installs audio equipment. During a recent fire that occurred at its warehouse, Speaker Shop’s entire inventory was destroyed. Speaker Shop’s accounting records reflect the following information.
Beginning Inventory .....$ 47,500
Net Purchases ........ 288,500
Net Sales ....... 440,000
Gross Profit Rate ..... 30%
Requirement
Use the gross profit method to estimate the amount of Speaker Shop’s inventory loss.
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Somshukla Chakraborty
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