Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. brad essary owned a small company that sold garden

Brad Essary owned a small company that sold garden equipment. The equipment was expensive, and...

80.2K

Verified Solution

Question

Accounting

Brad Essary owned a small company that sold garden equipment. The equipment was expensive, and a perpetual system was maintained for control purposes. Even so, lost, damaged, and stolen merchandise normally amounted to 5 percent of the inventory balance. On June 14, Essary's warehouse was destroyed by fire. Just prior to the fire, the accounting records contained a $280,000 balance in the Inventory account. However, inventory costing $42,000 had been sold and delivered to customers but had not been recorded in the books at the time of the fire. The fire did not affect the showroom, which contained inventory that cost $58,000.
Required
Estimate the amount of inventory destroyed by fire.
Answer is complete but not entirely correct.
Inventory destroyed by fire
image

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

Statistics
1.2K views

The data in the table represent the number of licensed drivers in various age groups and...

Physics
1.2K views

Three identical charged capacitors each of capacitance 5 F are connected as shown in figure...

Physics
1.2K views

5 An ideal gas of mass m in a state A goes to a another...

Basic Math
1.2K views

Political opinions are formed with zero influence from outside sources True or False True False

Basic Math
1.2K views

A frog with bionic legs leaps from a stump with an initial velocity of 64...

Accounting
1.2K views

Explain the importance of an "audit of historical information".

Accounting
1.2K views

Maxim has already spent $28,900 to manufacture a hamster food product called Green Health. Maxim...

Accounting
1.2K views

87. What are the implications of IFRS adoption for investors, analysts, and other stakeholders?

Accounting
1.2K views

Robinson, Inc. reports: What is Robinson's ending cash balance? $3097000$1721000$1390000$3531000

Accounting
1.2K views

Assuming the business maintains a perpetual inventory system, complete the subsidiary inventory ledger and determine...

Accounting
1.2K views

Selected comparative financial statements of Korbin Company follow. KORBIN COMPANY ...

Finance
1.2K views

Stock Y has a beta of 1.5 and an expected return of 17.1 percent. Stock...