The inventory of Swifty Company was destroyed by fire on March 1. From an examination of the accounting records, the following data for the first 2 months of the year are obtained: Sales Revenue...

The inventory of Swifty Company was destroyed by fire on March 1. From an examination of the accounting records, the following data for the first 2 months of the year are obtained: Sales Revenue $53,000, Sales Returns and Allowances $1,000, Purchases $34,000, Freight-In $1,300, and Purchase Returns and Allowances $1,500.

Determine the merchandise lost by fire, assuming:

A beginning inventory of $20,000 and a gross profit rate of 32% on net sales.

Estimated cost of merchandise lost

$enter the Estimated cost of merchandise lost in dollars

A beginning inventory of $31,000 and a gross profit rate of 41% on net sales.

Estimated cost of merchandise lost

$enter the Estimated cost of merchandise lost in dollars

Jun 03, 2022

SOLUTION.PDF

The inventory of Swifty Company was destroyed by fire on March 1. From an examination of the accounting records, the following data for the first 2 months of the year are obtained: Sales Revenue...

Get Answer To This Question

Related Questions & Answers

Submit New Assignment