On November 21,2024, a fire at Hodge Companys warehouse caused severe damage to its entire...
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On November a fire at Hodge Companys warehouse caused severe damage to its entire inventory of Product Tex. Hodge estimates that all usable damaged goods can be sold for $ The following information was available from the records of Hodges periodic inventory system: Inventory, November $ Net purchases from November to the date of the fire Net sales from November to the date of the fire Based on recent history, Hodges gross profit ratio on Product Tex is of net sales. Required: Calculate the estimated loss on the inventory from the fire, using the gross profit method.
On November a fire at Hodge Companys warehouse caused severe damage to its entire inventory of Product Tex. Hodge estimates that all usable damaged goods can be sold for $ The following information was available from the records of Hodges periodic inventory system:
Inventory, November $
Net purchases from November to the date of the fire
Net sales from November to the date of the fire
Based on recent history, Hodges gross profit ratio on Product Tex is of net sales.
Required:
Calculate the estimated loss on the inventory from the fire, using the gross profit method.
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