Lisbon Company SA lost 70% of its inventory in a fire on March 25, 2017. The accounting
Question:
Lisbon Company is fully insured for fire losses but must prepare a report for the insurance company.
Instructions
(a) Compute the gross profit rate for the month of February.
(b) Using the gross profit rate for February, determine both the estimated total inventory and inventory lost in the fire in March.
Transcribed Image Text:
Net sales Net purchases Freight-in Beginning inventory Ending inventory February 300,000 197,800 2,900 4,500 25,200 March (to 3/25) 260,000 191,000 4,000 25,200
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a February Net sales 300000 Cost of goods sold Beginning inventory 4500 Net pu...View the full answer
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Related Book For
Financial Accounting
ISBN: 978-1118978085
IFRS 3rd edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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