Reference no: EM131703617

Question - You are called by Tim Duncan of Buffalo 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$ 35,600Purchases-goods placed in stock July 1-1577,300Sales revenue-goods delivered to customers (gross)121,700Sales returns-goods returned to stock3,900

Your client reports that the goods on hand on July 16 cost $30,100, but you determine that this figure includes goods of $6,400 received on a consignment basis. Your past records show that sales are made at approximately 40% over cost. Duncan's insurance covers only goods owned.

Compute the claim against the insurance company.