Solution-Compute the amount of the loss of the fire

Compute the amount of the loss of the fire

Reference no: EM131756720

Question: Teal Company lost most of its inventory in a fire in December just before the year-end physical inventory was taken. The corporation's books disclosed the following.

Beginning inventory	$158,100	Sales revenue	$646,500
Purchases for the year	391,500	Sales returns	22,000
Purchase returns	31,100	Rate of gross profit on net sales	30	%

Merchandise with a selling price of $23,100 remained undamaged after the fire. Damaged merchandise with an original selling price of $15,700 had a net realizable value of $5,500.

Compute the amount of the loss as a result of the fire, assuming that the corporation had no insurance coverage.

Amount of loss $

Reference no: EM131756720

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Compute the amount of the loss of the fire

Reference no: EM131756720

Reference no: EM131756720

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