The merchandise inventory was destroyed by fire on December 13. The following data were obtained from the

Question:

The merchandise inventory was destroyed by fire on December 13. The following data were obtained from the accounting records:

a. Estimate the cost of the merchandise destroyed.b. Briefly describe the situations in which the gross profit method isuseful.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Financial and Managerial Accounting

ISBN: 978-0538480895

11th Edition

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

See More Books

Question Posted: Oct 14, 2011 04:47 AM

See More Questions

The merchandise inventory was destroyed by fire on August 19. The following data were obtained from the accounting records: a. Estimate the cost of the merchandise destroyed. b. Briefly describe the...
The merchandise inventory was destroyed by fire on October 11. The following data were obtained from the accounting records: Jan. 1 Merchandise inventory $ 260,000 Jan. 1Oct. 11 Purchases (net)...
Describe five situations in which the gross profit method of estimating inventory would be useful.
Which of the following industries would most likely have the highest ratio of sales revenue to property, plant and equipment? Question 9 options: 1) Airline 2) Consumer product manufacturing company...
Is education necessary for success in America? Do you agree or nope?
A stock currently sells for $103.57 and is in the constant growth phase. The dividend yield is 5.93% and the capital gains yield is 2.80%. What will the stock's price be in 6 years? 2. A stock has a...
You borrow $$495$ from your brother-in-law to buy an iPad and agree to pay it back when you get your tax refund (6 months away). Because you are family, but not trusted, you are being charged...
In her book Seven Signs of Ethical Collapse, Jennings explains: When an organization collapses ethically, it means that those in the organization have drifted into rationalizations and legalisms, and...
(10 points) 7. Create a times series plot for the rates of all diseases in the United States. Use the previous exercises as examples. library(dplyr) library(ggplot2) library(dslabs)...
You work in the human resources department of your company helping new employees fill out the necessary paperwork to get their first paycheck. There are a number of decisions that employees must make...
On the basis of the following data, estimate the cost of the merchandise inventory at November 30 by the retailmethod: Retail Cost November 1 November 1-30 November 1-30 Merchandise inwentory...
Based on the following data, estimate the cost of ending merchandise inventory: Sales (net) $ 5,260,000 Estimated gross profit rate 40% Beginning merchandise inventory $ 180,000 Purchases (net)...
Would you expect magnesium or calcium to be the more active metal? Explain your answer in terms of atomic structure.
In 2002, a French law went into effect that cut the standard workweek from 39 to 35 hours (workers got paid for 39 hours even though they worked 35) while at the same time prohibiting overtime hours...
An article in the Wall Street Journal explained that an increase in demand that began during the Covid19 pandemic prompted Bacardi Ltd. and Campari to produce more expensive brands of rum. Bacardi...
a. Solve the linear system $\mathbf{A x}=\mathbf{b}$ by using Cramer's rule. b. $\uparrow$ Repeat (a) in MATLAB. \(\mathbf{A}=\left[\begin{array}{cccc}3 & 2 & 0 & 0 \\ \frac{1}{2} & -\frac{4}{3}...
a. Solve the linear system $\mathbf{A x}=\mathbf{b}$ by using Cramer's rule. b. $\uparrow$ Repeat (a) in MATLAB. \(\mathbf{A}=\left[\begin{array}{cc}s^{2}+s+\frac{1}{3} & -\frac{1}{3} \\...
Briefly explain whether each of the following statements describes a change in supply or a change in quantity supplied. a. To take advantage of high prices for snow shovels during a snowy winter,...
What are the four major concerns that have been identified with new credit risk transfer vehicles?
Cable Corporation is 60% owned by Anna and 40% owned by Jim, who are unrelated. It has noncash assets, which it sells to an unrelated purchaser for $100,000 in cash and $900,000 in installment...
Discuss why convertible bonds are considered hybrids of debt and equity.
What is the nature of the balance in the prepaid insurance account at the end of the accounting period? (a) Before adjustment? (b) After adjustment?
On July 1 of the current year, a business paid the July rent on the building that it occupies. (a) Do the rights acquired at July 1 represent an asset or an expense? (b) What is the justification for...
(a) Explain the purpose of the two accounts: Depreciation Expense and Accumulated Depreciation. (b) What is the normal balance of each account? (c) Is it customary for the balances of the two...
How does culture relate to political and security issues in the world? Please provide specific examples. 2 What are the most significant contemporary security issues in the world? How does culture...
Tree Seedlings has the following current-year purchases and sales for its only product. Units Acquired at Cost Date January 1 Activities Beginning inventory January 3 Sales February 14 February 15...
A cylindrical log is cut as shown to form a park bench. Find: a. The area of triangle OAB in m. [2] b. The volume of the log in m. [3] B 70% 40 cm 3m

The merchandise inventory was destroyed by fire on December 13. The following data were obtained from the

Question:

Merchendise inventory Purchases (net) Sales (net) Estimated gross proit rate Jan. 1 Jan, 1-Dec. 13 $ 500,000 4280.000 6,500,000 36%

Step by Step Answer:

a A B C 1 Cost 2 Merchandise inventory January 1 500000 ...View the full answer

Financial and Managerial Accounting

Students also viewed these Managerial Accounting questions