Question: Answer Problem 2 Problem 2: On December 31, 2020 Chelsea Company's inventory burned. Sales and purchases for the year had been $1,500,000 and $980,000, respectively.

Answer Problem 2 Problem 2: On December 31, 2020 Chelsea Company's

Answer Problem 2

Problem 2: On December 31, 2020 Chelsea Company's inventory burned. Sales and purchases for the year had been $1,500,000 and $980,000, respectively. The beginning inventory (Jan. 1, 2020) was $170,000; in the past Chelsea's gross profit has averaged 40% on cost. Instructions Compute the estimated cost of inventory burned. Prepare a schedule showing your work that would be acceptable for submission as an insurance claim

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