A substantial portion of inventory owned by Prentiss Sporting Goods was recently destroyed when the roof collapsed during a rainstorm. Prentiss also lost some of its accounting records. Prentiss must estimate the loss from the storm for insurance reporting and financial statement purposes. Prentiss uses the periodic inventory system. The following accounting information was recovered from the damaged records. Beginning inventory Purchases to date of storm Sales to date of storm $203,400 398,400 599,700 The value of undamaged inyentory counted was $135,125. Historically, Prentiss' gross margin percentage has been approximately 25 percent of sales. Required Estimate the following: a. Gross margin in dollars. b. Cost of goods sold in dollars. c. Ending inventory. d. Amount of lost inventory. a. Gross margin Cost of goods sold Estimated ending inventory b. C.

A substantial portion of inventory owned by Prentiss Sporting Goods was recently destroyed when the roof collapsed during a rainstorm. Prentiss also lost some of its accounting records. Prentiss must estimate the loss from the storm for insurance reporting and financial statement purposes. Prentiss uses the periodic inventory system. The following accounting information was recovered from the damaged records. Beginning inventory Purchases to date of storm Sales to date of storm $203,400 398,400 599,700 The value of undamaged inyentory counted was $135,125. Historically, Prentiss' gross margin percentage has been approximately 25 percent of sales. Required Estimate the following: a. Gross margin in dollars. b. Cost of goods sold in dollars. c. Ending inventory. d. Amount of lost inventory. a. Gross margin Cost of goods sold Estimated ending inventory b. C.

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Description: A substantial portion of inventory owned by Prentiss Sporting Goods was recently destroyed when the roof collapsed during arainstorm. Prentiss also lost some of its accounting records. Prentiss must estimate the loss from the storm for insurance rep

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter20: Accounting For Inventory

Section: Chapter Questions

Problem 1CP

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A substantlal portlon of Inventory owned by Prentiss Sporting Goods was recently destroyed when the roof collapsed during a ralnstorm. Prentiss also lost some of Its accounting records. Prentiss must estimate the loss from the storm for Insurance reporting and financial statement purposes. Prentiss uses the perlodic Inventory system. The following accounting information was recovered from the damaged records. Beginning inventory $196, eee 398, e00 Purchases to date of storm Sales to date of storm бее, вее The value of undamaged Inventory counted was $102,676. Hıstorically, Prentiss' gross margin percentage has been approximately 22 percent of sales. Required Estimate the following: a. Gross margin in dollars. b. Cost of goods sold in dollars. c. Ending Inventory. d. Amount of lost Inventory. a. Gross margin b. Cost of goods sold C. Estimated ending inventory d. Inventory lost
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