Question list

Howard Company, a camera store, lost some inventory in a fire on May $15.$ To file an insurance claim, the compar must estimate its May $15$ inventory using the gross profit method. For the past two years, Howard Company's gros profit has averaged $43\%$ of net sales. Its inventory records reveal the following data:

$($Click the icon to view the data.$)$

Question $1$

Read the requirements.

Requirements

Question $2$

Question $3$

Requirement $1.$ Estimate

Estimate the cost of the lost inventory using the gross profit method.

Prepare the income statement for May $1$ to May $15$ for this product through gross profit. Show the detailed computations of cost of goods sold in a separate schedule.

Question $4$

Net ourchases

Data table

Inventory, May $1$

$$57,500$

Transactions May $1-15$:

Purchases

$490,900$

Purchases discounts

$12,000$

Purchase returns

$70,500$

$(1)$ Time Remaining: $01$:$43$:$02$

Sales

$661,000$