Assume Whitfield Company, a camera store, lost some inventory in a fire on August 15. To file
Question:
Inventory, August 1.................. $ 67,200
Transactions August 1–15:
Purchases ................................. 410,800
Purchase discounts................... 15,000
Purchase returns....................... 10,600
Sales......................................... 695,000
Sales returns............................. 12,000
Requirements
1. Estimate the cost of the lost inventory using the gross profit method.
2. Prepare the income statement for August 1 to August 15 for this product through gross profit. Show the detailed computations of cost of goods sold in a separate schedule.
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Related Book For
Financial Accounting
ISBN: 978-0133427530
10th edition
Authors: Walter Harrison, Charles Horngren, William Thomas
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