Reference no: EM132535709

Question - You are called by Tim Duncan of Marigold 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- 1587,200 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.