Mathematics, 02.10.2019 23:30 madelynreynolds4757
Asubstantial 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 $ 204,300
purchases to date of storm 398,800
sales to date of storm 600,900
the value of undamaged inventory counted was $134,725. historically, prentiss’s 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.
Answers: 3
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