A flood destroyed a company's warehouse contents on September 12. The following information was the only information
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Question:
A flood destroyed a company's warehouse contents on September 12. The following information was the only information that was salvaged:
1. Inventory, beginning: $28,600.
2. Purchases for the period: $17,000.
3. Sales for the period: $55,000.
4. Sales returns for the period: $700.
The company's average gross profit ratio is 35%. What is the estimated cost of the lost inventory?
Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 978-0078025655
7th edition
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Old
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