ASK#3 (Gross Profit Method) you are called by the CFO of Dolphin Co. on March...
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ASK#3 (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 Purchases-goods placed in stock March 1-9 Sales-goods delivered to customers (gross) Sales returns-goods returned to stock $ 78,000 112,000 91,000 3,000 Your client reports that the goods on hand on March 9 cost $24,000, but you determine that this figure excludes goods of $7,000 out 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
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