Eastman Company lost most of its inventory in a fire in December just before the year-end...

 

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Eastman Company lost most of its inventory in a fire in December just before the year-end physical inventory was taken. Corporate records disclose the following. Inventory (beginning) $ 87,900 Sales revenue $429,800 Purchases 307,600 Sales returns 24,700 Purchase returns 29,900 Gross profit % based on net selling price 35 % Merchandise with a selling price of $36,300 remained undamaged after the fire, and damaged merchandise has a net realizable value of $8,310. The company does not carry fire insurance on its inventory. Compute the amount of inventory fire loss. (Do not use the retail inventory method.) Inventory fire loss Eastman Company lost most of its inventory in a fire in December just before the year-end physical inventory was taken. Corporate records disclose the following. Inventory (beginning) $ 87,900 Sales revenue $429,800 Purchases 307,600 Sales returns 24,700 Purchase returns 29,900 Gross profit % based on net selling price 35 % Merchandise with a selling price of $36,300 remained undamaged after the fire, and damaged merchandise has a net realizable value of $8,310. The company does not carry fire insurance on its inventory. Compute the amount of inventory fire loss. (Do not use the retail inventory method.) Inventory fire loss

Answer rating: 100% (QA)

A C D E 1 Particulars Amount 2 Purchase 307600 3 Purchase return 29900 4 Beginning inventory ... View the full answer