Windy City Insurance Ltd. has received a fire-loss claim of $45,000 from Balton Corp. A fire destroyed

Question:

Windy City Insurance Ltd. has received a fire-loss claim of $45,000 from Balton Corp. A fire destroyed Balton’s inventory on May 25, 2016. Balton has an average gross profit of 331/3 per cent. You have obtained the following information:

Inventory, May 1, 2016

Purchases, May 1 - May 25

Sales, May 1 - May 25

$ 80,000

150,000

300,000

Required:

1. Calculate the estimated amount of inventory lost in the fire.

2. How reasonable is Balton’s claim?

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Accounting Introduction To Financial Accounting

ISBN: 9781517089719

1st Edition

Authors: Henry Dauderis, David Annand

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Question Posted: Apr 26, 2016 09:36 AM

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Windy City Insurance Ltd. has received a fire-loss claim of $45,000 from Balton Corp. A fire destroyed

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1 2 Balton lost about 30000 of inventory in the fi...View the full answer

Accounting Introduction To Financial Accounting

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