Current Attempt in ProgressBlossom Company reported the following information for November and December 2022.NovemberDecemberCost of goods purchased$535.000$ 603,000Inventory, beginning-of-month129,000116,050Inventory, end-of-month116.050Sales revenue843.0001.000.000Blossom's ending inventory at December 31 was destroyed in a fire.(a)X Your answer is incorrectCompute the gross profit rate for November.Gross profitrate36.5 Compute the gross profit rate for November.Gross profit rate36.5eTextbook and MediaSave for LaterAttempts: 2 of 5 usedSubmit Answer(b)X Your answer is incorrectUsing the gross profit rate for November, determine the estimated cost of inventory lost in the fire.Estimated cost of ending inventory280950eTextbook and Media

Name: Current Attempt in ProgressBlossom Company reported the following inf
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Description: Current Attempt in ProgressBlossom Company reported the following information for November and December 2022.NovemberDecemberCost of goods purchased$535.000$ 603,000Inventory, beginning-of-month129,000116,050Inventory, end-of-month116.050Sales reven

Ending inventory is the price of factors handy there at cease of a reporting period. For a company…

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Blossom Company reported the following information for November and December 2022. November December Cost of goods purchased $535,000 $ 603,000 Inventory, beginning-of-month 129,000 116,050 Inventory, end-of-month 116.050 Sales revenue 843.000 1,000.000 Blossom's ending inventory at December 31 was destroyed in a fire.

Blossom Company reported the following information for November and December 2022. November December Cost of goods purchased $535,000 $ 603,000 Inventory, beginning-of-month 129,000 116,050 Inventory, end-of-month 116.050 Sales revenue 843.000 1,000.000 Blossom's ending inventory at December 31 was destroyed in a fire.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter9: Current Liabilities And Contingent Obligations

Section: Chapter Questions

Problem 1RE: Rescue Sequences LLC purchased inventory by issuing a 30,000, 10%, 60-day note on October 1. Prepare...

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The moving average inventory cost flow assumption is applicable to which of the following inventory systems? Questions M7-6 and M7-7 are based on the following data: City Stationers Inc. had 200 calculators on hand on January 1, 2019, costing 18 each. Purchases and sales of calculators during the month of January were as follows: City uses a periodic inventory system. According to a physical count, 150 calculators were on hand at January 31, 2019.
Refer to the information in E22-13. Required: Prepare the correcting journal entries if the company discovers each error 2 years after it is made and it has closed the books for the second year. Ignore income taxes. E22-13: The following are independent errors made by a company that uses the periodic inventory system: a. Goods in transit, purchased on credit and shipped FOB destination, 10,000, were included in purchases but not in the physical count of ending inventory. b. Purchase of a machine for 2,000 was expensed. The machine has a 4-vear life, no residual value, and straight-line depreciation is used. c. Wages payable of 2,000 were not accrued. d. Payment of next years rent, 4,000, was recorded as rent expense. e. Allowance for doubtful accounts of 5,000 was not recorded. The company normally uses the aging method. f. Equipment with a book value of 70,000 and a fair value of 100,000 was sold at the beginning of the year. A 2-year, non-interest-bearing note for 129,960 was received and recorded at its face value, and a gain of 59,960 was recognized. No interest revenue was recorded and 14% is a fair rate of interest.
Refer to the information provided in RE8-4. If Paul Corporations inventory at January 1, 2019, had a cost and net realizable value of 300,000, prepare the journal entry to record the reductions to NRV for Paul Corporation assuming that Paul uses a periodic inventory system and the direct method. Paul Corporation uses FIFO and reports the following inventory information: Assuming Paul uses a perpetual inventory system and the direct method, prepare the journal entry to record the write-down of inventory.
Rescue Sequences LLC purchased inventory by issuing a 30,000, 10%, 60-day note on October 1. Prepare the journal entries for Rescue Sequences to record the purchase and payment assuming it uses a perpetual inventory system and a 360-day calendar fiscal year. Rescue Sequences LLC uses a perpetual inventory system.
Crane Company reported the following information for November and December 2022. Cost of goods purchased Inventory, beginning-of-month Inventory, end-of-month Sales revenue (a) November December $531,000 $606,000 138,000 Gross profit rate 181,650 Crane's ending inventory at December 31 was destroyed in a fire. 855,000 1,000,000 Compute the gross profit rate for November. 181,650 %
E6.18 modified The inventory of Ipswich Books was destroyed by fire on March 1. From an examination of the accounting records, the following data for the first two months of the year are obtained: Sales revenue $51,000, Sales returns and allowances $1,000, Purchases $31,200, Freight-in $1,200, and Purchase returns and allowances $1,800. Determine the merchandise lost by fire, assuming: a. A beginning inventory of $20,000 and a gross profit rate of 40% on net sales. b. A beginning inventory of $30,000 and gross profit rate of 25% on cost
The following information is available for October for Sheridan Company. (Round answers to 0 decimal places, e.g. 5,275.) Beginning Inventory $330000 Net purchases 1060000 Net sales 2120000 Percentage markup on 66.67% cost A fire destroyed Sheridan's October 31 inventory, leaving undamaged inventory with a cost of $20500. Using the gross profit method, the estimated ending inventory destroyed by fire is O $730000. O $97500. O$565333. $544833.
Wildhorse Company reported the following information for November and December 2022. November December Cost of goods purchased $538,000 $ 603,000 Inventory, beginning-of-month 126,000 171,000 Inventory, end-of-month 171,000 ???? Net sales 850,000 1,000,000 Wildhorse’s ending inventory at December 31 was destroyed in a fire. Compute the gross profit rate for November. (Round answer to 0 decimal places, e.g. 15%.) Gross profit rate enter the Gross profit rate in percentages % Using the gross profit rate for November, determine the estimated cost of inventory lost in the fire. (Round answer to 0 decimal places, e.g. 1,250.) Estimated cost of ending inventory $enter the Estimated cost of ending inventory in percentages
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On September 30, 2021, Nueve Company reported that a fire caused severe damage to the entire inventory. The entity has a gross profit of 30% on cost. The following data were available for nine months ended September 30, 2021: Inventory, January 1 Net purchases Net sales P 1,100,000 6,000,000 7,280,000 A physical inventory count revealed unusable damaged goods which can be sold for P 100,000. 18. What is the estimated cost of goods sold for the nine months ended September 30, 2020? А. Р 5,500,000 В. Р4,970,000 С. Р 5,096,000 D. P5,600,000 19. What is the estimated amount of fire loss? A. P1,500,000 В. Р 1,400,000 С. Р 2,004,000 D. P1,964,000 20. Who is the Patron Saint of Accountants? A. St. Mathew B. St. Peter C. St. Benedict D. St. James
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Wildhorse Company began operations in 2025 and determined its ending inventory at cost and at LCNRV at December 31, 2025, and December 31, 2026. This information is presented below. 12/31/25 $855,000 12/31/26 (a) Cost Date 1,022,000 LCNRV $809,400 986,700 Prepare the journal entries required at December 31, 2025, and December 31, 2026, assuming that the inventory is recorded at LCNRV, and that a perpetual inventory system. Using the cost-of-goods-sold method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter o for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Account Titles and Explanation Debit Credit