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? edugen.wileyplus.com Apple Yahoo! Google Maps baannnn News? Popular WileyPLUS WileyPLUS ileyPLU Click to close this tab; Option-click to close al 1stbs eicegt his PLUS Kieso, Intermediate Accounting,16 Kieso, Intermediate Accounting, 16 ACCOU CALCULATOR SSAGE HY INSTRUCTOR STANDARD VIEW PRINTER V Question 1 Martinez Company lost most of its inventory in a fire in December just before the year-end physical inventory was taken. Corporate records disclose the following. Inventory (beginning) 79,600 Purchases Purchase returns Sales revenue 284,900 Sales returns $409,800 20,900 28,000 Gross profit % based on net selling price 3596 Merchandise with a selling price of $29,600 remained undamaged after the fire, and damaged merchandise has a net realizable value of $8,000. The company does not carry fire insurance on its inventory. Compute the amount of inventory fire loss. (Do not use the retail inventory method.) Inventory fire loss s Question Attempts: 0 of 2 used SAVE FOR LATER SUBHIT ANSWER

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Fire loss on inventory = $56,475

Amount ($) Amount ($) Beginning inventory 79,600 Purchases 284,900 364,500 Purchase returns (28,000) Goods available at cost 336,500 Sales revenue 409,800 Sales returns (20,900) Net sales 388,900 Less: Gross profit (35% * $388,900) (136,115) 252,785 Estimated ending inventory (unadjusted for damage) 83,715 Less: Goods on hand - undamaged (at cost) (29,600 * (1-35%)) (19,240) Less: Goods on hand- damaged (at net realizable value) (8,000) Fire loss on inventory 56,475

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