On the morning of March 21, management of Fitzgerald Company learned that there had been a...

 

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On the morning of March 21, management of Fitzgerald Company learned that there had been a break-in at their warehouse, and that SOME of their merchandise inventory (but not ALL the inventory) had been stolen after the close of business on March 20. Fitzgerald immediately took an inventory count on March 21 to figure out the amount of the loss before opening for business. This inventory count indicated that $42,000 of goods were on-hand and present in the warehouse. The following additional data is available from the accounting records of Fitzgerald: Purchases received, March 1- 20 $152,000 Inventory on hand, March 1 $120,000 Sales revenue, March 1-20 (goods delivered to customers) Records from the recent past indicate that sales prices for the goods that were stolen are set, on average, at 38% above cost. $246,000 Required (show all calculations): Estimate the inventory of goods on hand at the close of business on March 20th AND determine the amount of the theft loss. On the morning of March 21, management of Fitzgerald Company learned that there had been a break-in at their warehouse, and that SOME of their merchandise inventory (but not ALL the inventory) had been stolen after the close of business on March 20. Fitzgerald immediately took an inventory count on March 21 to figure out the amount of the loss before opening for business. This inventory count indicated that $42,000 of goods were on-hand and present in the warehouse. The following additional data is available from the accounting records of Fitzgerald: Purchases received, March 1- 20 $152,000 Inventory on hand, March 1 $120,000 Sales revenue, March 1-20 (goods delivered to customers) Records from the recent past indicate that sales prices for the goods that were stolen are set, on average, at 38% above cost. $246,000 Required (show all calculations): Estimate the inventory of goods on hand at the close of business on March 20th AND determine the amount of the theft loss.

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Inventory on hand March 1 120000 Add Purchases received March 1 20 152... View the full answer