A substantial portion of inventory owned by Prentiss Sporting Goods was recently destroyed when the...
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Accounting
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. Prentuss must estimate the loss from the storm for insurance reponang and financial statement purposes. Prentiss uses the periodic inventory system. The following accounting information was recovered from the damaged records. The value of undamaged inventory counted was $123,292 Historically. Prentiss gross margin percentage has been approximately 24 percent of sales. Required Estimate the following o. Gross margin in dollars. b. Cost of goods sold in dollars: c. Ending inventory. d. Amount of lost inventory
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