Ayayai Company lost most of its inventory in a fire in December just before the...
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Accounting
Ayayai Company lost most of its inventory in a fire in December just before the year-end physical inventory was taken. Corporate records disclose the following.
Inventory (beginning) $ 81,100
Sales revenue $408,700
Purchases 285,300
Sales returns 20,700
Purchase returns 27,500
Gross profit % based on net selling price 33 %
Merchandise with a selling price of $29,500 remained undamaged after the fire, and damaged merchandise has a net realizable value of $8,300. The company does not carry fire insurance on its inventory.
Compute the amount of inventory fire loss. (Do not use the retail inventory method.)
Inventory fire loss $ =
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