On September 22, 2024, a flood destroyed the entire merchandise inventory on hand in a warehouse owned
Question:
On September 22, 2024, a flood destroyed the entire merchandise inventory on hand in a warehouse owned by the Rocklin Sporting Goods Company. The following information is available from the records of the company’s periodic inventory system:
Required:
Estimate the cost of inventory destroyed in the flood using the gross profit method.
Transcribed Image Text:
Inventory, January 1, 2024 Net purchases, January 1 through September 22 Net sales, January 1 through September 22 Gross profit ratio $140,000 370,000 550,000 25%
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Beginning inventory from records 140000 Plus Net purchases from records 370000 Cost of good...View the full answer
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