Business, 28.12.2019 01:31, Savannahpeeler1001
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 $140,000 purchases through october 6 670,000 sales through october 6 1,100,000 gross margin for don’s has traditionally been 30 percent of sales.
required
a. for the period ending october 6, compute the following:
1. estimated gross margin
2. estimated cost of godos sold
3. estimated inventory at october 6
b. assume that $15,000 of the inventory was not damaged. what is the amount of the loss from the tornado?
1. total loss
Answers: 3
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The inventory of don’s grocery was destroyed by a tornado on october 6 of the current year. fortunat...
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