Compute the amount of the loss as a result of the fire

Assignment Help Accounting Basics
Reference no: EM132590946

Question - Gross Profit-Method

Wallace 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 $170,000

Sales revenue $650,000

Purchases for the year 390,000

Sales returns 24,000

Purchase returns 30,000

Rate of gross profit on net sales 40%

Merchandise with a selling price of $21,000 remained undamaged after the fire. Damaged merchandise with an original selling price of $15,000 had a net realizable value of $5,300.

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

Reference no: EM132590946

Questions Cloud

Business continuity plan and disaster recovery plan : Research and select an organization that effectively implement the disaster recovery and business continuity plan.
How much total principal is repaid till the beginning : How much total principal is repaid till the beginning of the 17th payment interval of a 4.5-year loan for $4,567 at an interest rate of 7.44%
Which regulation and sources can we use in this situation : Lance asks you to explain why his employer, the Good Food Truck Stop, Which regulation and sources can we use in this situation
Put less strain on network throughput : Which type of streaming is likely to put less strain on a network's throughput? Why? Is one type of streaming generally more preferably overall than another?
Compute the amount of the loss as a result of the fire : Merchandise with a selling price of $21,000 remained undamaged after the fire. Compute the amount of the loss as a result of the fire
Discuss an organization need for physical security : Discuss an organization's need for physical security. What methods, approaches, and models can be used by organizations when designing physical security needs?
Preparing a contribution margin income statement for data : Preparing a contribution margin income statement. The company sold 10,000 servings of ice cream during June for $5 per serving.
Determine how much cash ABC Company will realize : ABC Company will issue $5,500,000 in 6%, 10-year bonds when the market rate of interest is 8%. Determine how much cash ABC Company will realize
What is the oxidation state of iron : What is the oxidation state of iron (Fe) in the reactant Fe(s)?

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is the amount of helen''s tax savings

If her marginal tax rate is 25% and her effective tax rate is 20%, what is the amount of Helen's tax savings from purchasing the residence

  Roi and residual income-new product line

Compute the East Division's ROI for last year; also compute the ROI as it would appear if the new product line is added and compute the East Division's residual income for last year; also compute the residual income as it would appear if the new pro..

  Discuss the value found in learning

In today's business environment, companies use technology (e.g., computers and software programs) to record, organize, summarize and prepare financial reports.

  Calculate mans earnings per share for the year ended march

Calculate Man's earnings per share for the year ended 31 March 2015 and the comparative figure for the year ended 31 March 2014.

  Discuss meet the needs of society and how they are funded

Explain why such expansions are needed to meet the needs of society and how they are funded

  What amount did randy withdraw

What amount did Randy withdraw, assuming the investment earns simple interest and what amount did Randy withdraw, assuming the investment earns interest compounded annually?

  What amount of loss on impairment of goodwill

Twilight Corporation acquired End-of-the-World Productions on January 1, 2014 for $6,400,000, What amount of loss on impairment of goodwill

  Which firm is facing more risk in terms of its current sale

Which firm has higher operating gearing. What is the expected net income of both firms. Would expected net income be for both firms if sales were a) 140,000 units and b) 180,000 units. Which firm is facing more risk in terms of its current sales pred..

  How much would you have to invest today in the bank at an

how much would you have to invest today in the bank at an interest rate of 7 to have an annuity of 2800 per year for 9

  The accounting records of dolphin company revealed the

the accounting records of dolphin company revealed the following information total manufacturing costs 600000

  Define the different types of responsibility centers

Discuss the conditions necessary for an accounting system for responsibility centers to be effective. Define the different types of responsibility centers.

  Write down a memo explaining the advantages and

write down a memo explaining the advantages and disadvantages of organizational forms. you might research sources

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd