Saffordville Company lost 70% of its inventory in a fire on March 25, 2010. The accounting records
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Saffordville Company lost 70% of its inventory in a fire on March 25, 2010. The accounting records showed the following gross profit data for February and March
Saffordville 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 inMarch.
Transcribed Image Text:
March (to 3/25) February S300,000 197,800 2,900 4.500 Net sales Net purchases Freight-in $250.000 4.000 13.200 Beginning inventory Ending inventory 13,200
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a February Net sales 300000 Cost of goods sold Beginning inventory 4500 Net purchase...View the full answer
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Related Book For
Accounting Principles
ISBN: 978-0470533475
9th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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