Reference no: EM132254576
Question - You are called by Tim Duncan of Novak Co. on July 16 and asked to prepare a claim for insurance as a result of a theft that took place the night before. You suggest that an inventory be taken immediately. The following data are available,
Inventory, July 1 - $41,400
Purchases-goods placed in stock July 1-15 - 87,200
Sales revenue - goods delivered to customers (gross) - 123,900
Sales returns - goods returned to stock - 4,400
Your client reports that the goods on hand on July 16 cost $32,800, but you determine that this figure includes goods of $5,800 received on a consignment basis. Your past records show that sales are made at approximately 30% over cost. Duncan's insurance covers only goods owned.
Compute the claim against the insurance company.
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