E9-15B (Gross Profit Method) You are called by the CFO of Dolphin Co. on March 9 and asked to prepare a claim for insurance as a result of a theft that took place the night before.
mujionostevoE9-15B (Gross Profit Method) You are called by the CFO of Dolphin Co. on March 9 and asked to prepare a claim for insurance as a result of a theft that took place the night before. You suggest that an inventory be taken immediately. The following data are available.
Inventory, March 1 $ 78,000
Purchases—goods placed in stock March 1–9 112,000
Sales—goods delivered to customers (gross) 91,000
Sales returns—goods returned to stock 3,000
Your client reports that the goods on hand on March 9 cost $24,000, but you determine that this figure includes goods of $7,000 received on a consignment basis. Your past records show that sales are made at approximately 20% over cost. Dolphin’s insurance covers only goods owned.
Instructions
Compute the claim against the insurance company.
- 11 years ago
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