Question #4 V. Market is a retail store selling small appliances and sporting goods. The...
50.1K
Verified Solution
Link Copied!
Question
Accounting
Question #4
V. Market is a retail store selling small appliances and sporting goods. The business follows a policy of selling all merchandize at a price exactly twice its cost to the store and uses a periodic inventory system.
Net sales $580,000
Inventory, January 1 . $58,000
Purchases during the year . $297,000
A physical count indicates merchandize costing $49,250 is on hand at December 31.
Required:
- Determine the gross profit for the year.
- On seeing the gross profit figures the store owner makes the following comment: Inventory shrinkage losses (shoplifting) are really costing me a lot. Do you agree with the owner? If yes, how much?
- Assume the store can eliminate the shoplifting by hiring a security guard at a cost of $1,800 per month. Would this strategy be profitable? Explain.
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!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.