Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. bonita company lost all of its inventory in a fire

Bonita Company lost all of its inventory in a fire on December 26, 2022. The...

80.2K

Verified Solution

Question

Accounting

Bonita Company lost all of its inventory in a fire on December 26, 2022. The accounting records showed the following inventory-related data for November and December.

November December (to 12/26)

Net sales

 $ 618,000 $ 730,000

Beginning inventory

 30,000 30,000

Purchases

 384,000 428,000

Purchase returns and allowances

 13,100 14,600

Purchase discounts

 8,500 9,500

Freight-in

 8,400 10,600

Ending inventory

 30,000 ?

Bonita is fully insured for fire losses but must prepare a report for the insurance company.

(a)

Compute the gross profit rate for November.

Gross profit rate

enter the gross profit rate in percentages

 ______________%

(b)

Using the gross profit rate for November, determine the estimated cost of the inventory lost in the fire.

Estimated inventory lost in fire

$ _________

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

currently looking at two countries - Sri Lanka and Malaysia. The company's plan to issue bonds...

Medical Sciences
1.2K views

1) If you are searching for the muscles of the perineum, which statement about these muscles will...

Chemistry
1.2K views

Calculate ΔHrxn for the following reaction: CaO(s)+CO2(g)→CaCO3(s) Use the following reactions and given ΔH values: Ca(s)+CO2(g)+12O2(g)→CaCO3(s), ΔH= -812.8...

Civil Engineering
1.2K views

A −2.60% grade meets a +1.95% grade at station 44+25 and elevation 3386.96 ft, 315-ft curve,...

Advance Math
1.2K views

On a $375,000 home loan, you can either finance at 5.6% for 20 or 30 years....

Physics
1.2K views

6 Figure shows a set of equipotential surfaces magnitude and direction of electric field that...

Physics
1.2K views

A solid cylinder of mass m is wrapped with an inextensible light string and is...

Accounting
1.2K views

Please help me with the following question. Thank you very much. Section B...

Accounting
1.2K views

Jones Corp.'s capital structure was as follows: December 31 Year 3 Year 2 Outstanding shares...

Accounting
1.2K views

Common Stock - par $1, 10,000 shares = $10,000 Preffered stock 10% (par $1, 100,000...

Accounting
1.2K views

Net Cash Frowded by Operating Activitles Cesh Flows fromimesing Activites 25880 Net Cish used by...

Finance
1.2K views

If Lews Steel Forms purchases $668,000 of new equipment, they can lower annual operating costs...