Solution-Estimate the cost of the merchandise destroyed

Estimate the cost of the merchandise destroyed

Reference no: EM13500542

The merchandise inventory was destroyed by fire on August 19. The following data were obtained from the accounting records:

Jan.1Merchandise inventory$360,000
Jan. 1-Aug.19Purchase (net)3,200,000
Sales (net) 5,200,000
Estimated gross profit rate36%
a-Estimate the cost of the merchandise destroyed.
b-Briefly describe the situations in which the gross profit method is useful.

Reference no: EM13500542

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Estimate the cost of the merchandise destroyed : The merchandise inventory was destroyed by fire on August 19. The following data were obtained from the accounting records.

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Estimate the cost of the merchandise destroyed

Reference no: EM13500542

Reference no: EM13500542

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