Question

A substantial portion of inventory owned by Prentiss Sporting Goods was recently destroyed when the roof...

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 $ 201,400
Purchases to date of storm 396,600
Sales to date of storm 603,100


The value of undamaged inventory counted was $82,358. Historically, Prentiss’s gross margin percentage has been approximately 18 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.

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A substantial portion of inventory owned by Prentiss Sporting Goods was recently destroyed when the roof...
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 $ 195,900   Purchases to date of storm 404,600   Sales to date of storm 602,500      The value of...
A substantial portion of inventory owned by Prentiss Sporting Goods was recently destroyed when the roof...
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 $ 60,000 Purchases to date of storm 190,000 Sales to date of storm 250,000 The value of undamaged inventory...
Exercise 5-14A Estimating ending inventory LO 5-4 A substantial portion of inventory owned by Prentiss Sporting...
Exercise 5-14A Estimating ending inventory LO 5-4 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 $ 202,900 Purchases to date of storm 398,600 Sales to date of...
The inventory was destroyed by fire on December 31. The following data were obtained from the...
The inventory was destroyed by fire on December 31. The following data were obtained from the accounting records: Jan. 1 Inventory $353,500 Jan. 1 - Dec. 31 Purchases (net) 2,369,000 Sales (net) 4,400,000 Estimated gross profit rate 45% a. Estimate the cost of the inventory destroyed. Estimated Cost of Merchandise Destroyed Inventory, January 1 $ Purchases (net), January 1-December 31 Merchandise available for sale $ Sales, January 1-December 31 $ Estimated gross profit Estimated cost of goods sold Estimated inventory,...
[The following information applies to the questions displayed below.] The inventory of Don’s Grocery was destroyed...
[The following information applies to the questions displayed below.] The inventory of Don’s Grocery was destroyed by a tornado on October 6 of the current year. Fortunately, some of the accounting records were at the home of one of the owners and were not damaged. The following information was available for the period of January 1 through October 6: Beginning inventory, January 1 $ 70,900 Purchases through October 6 377,000 Sales through October 6 514,500 Gross margin for Don’s has...
3) A firm experienced a flood loss in the current year that destroyed all but $6,000...
3) A firm experienced a flood loss in the current year that destroyed all but $6,000 of inventory (at cost). Data available are below: Current Prior Year (to Date of Flood) Sales $100,000 $40,000 Purchases 70,000 35,000 Cost of goods sold 60,000 Ending inventory 10,000 What is the approximate inventory lost? A. $10,000 B. $15,000 C. $16,000 D. $21,000 © 2019 Gleim Publications Inc. Inventory 0219 6 4) A flash flood swept through Hat, Inc.’s warehouse on May 1. After...
1. Alpha Company uses the periodic inventory system and had the following inventory & sales activity...
1. Alpha Company uses the periodic inventory system and had the following inventory & sales activity for the month of May 2016: Date Activity Quantity Unit Price 5/1 Beginning Inventory 175 $10 5/5 Purchase 200 $12 5/15 Purchase 300 $15 5/25 Purchase 150 $16 Sales were 525 units at $20.  Using the LIFO method, determine the dollar values following for the month of May: 1. Ending Inventory 2. Cost of Goods Available for Sale 3. Cost of Goods Sold 2. The...
If a company uses a periodic inventory system, which of the following entry or entries is/are...
If a company uses a periodic inventory system, which of the following entry or entries is/are required to record the sale of merchandise on account? I Debit Accounts Receivable; Credit Sales Revenue II Debit Cost of Goods Sold; Credit Purchases III Debit Cost of Goods Sold; Credit Inventory IV Both I & III are necessary entries Select one: a. II b. III c. IV d. I In a period of rising prices, which method would yield the lowest ending inventory,...