Bao Company lost all of its inventory in a fire on December 26, 2022. The accounting records

Question:

Bao Company lost all of its inventory in a fire on December 26, 2022. The accounting records showed the following gross profit data for November and December.

Bao is fully insured for fire losses but must prepare a report for the insurance company.

Instructions

a. Compute the gross profit rate for November.

b. Using the gross profit rate for November, determine the estimated cost of the inventory lost in the fire.

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Related Book For answer-question

College Accounting

ISBN: 1986

1st Edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Deanna C. Martin, Jill E. Mitchell

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Question Posted: Jan 09, 2020 12:20 PM

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Bao Company lost all of its inventory in a fire on December 26, 2022. The accounting records

Question:

November December (to 12/26) $700,000 36,000 420,000 14,900 9,500 9,900 ? Net sales Beginning inventory Purchases Purchase returns and allowances Purchase discounts Freight-in Ending inventory $600,000 389,000 13,300 8,500 8,800 36,000

Step by Step Answer:

a November Net sales 600000 Cost of goods sold Beginning inventory 32000 Purchases 389000 LessPurcha...View the full answer

College Accounting

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