Homework Help: accounting

Posted by Anonymous on Wednesday, January 21, 2009 at 12:11am.

On October 31, a flood at Payne Company’s only warehouse caused severe damage
to its entire inventory. Based on recent history, Payne has a gross profit of 25 percent of
net sales. The following information is available from Payne’s records for the 10 months
ended October 31.
Inventory, January 1 $ 520,000
Purchases 4,120,000
Purchase returns 60,000
Sales 5,600,000
Sales discounts 400,000
A physical inventory disclosed usable damaged goods that Payne estimates it can
sell for $70,000. Using the gross profit method, the estimated cost of goods sold for the
10 months ended October 31 should be
A. $680,000. C. $3,900,000.
B. $3,830,000. D. $4,200,000.

No one has answered this question yet.

Answer this Question

Related Questions

accounting - A merchandising company wants to include the cost of operating its ...
accounting - a merchandising company wants to include the cost of operating its ...
accounting - a merchandising company wants to include the cost of operating its ...
accounting - a merchandising company wants to include the cost of operating its ...
introduction to accounting - a merchandising company wants to include the cost ...
accounting - using the following information, calculate inventory turnover ratio...
accounting - Can someone please check my answer to this question: In recent ...
accounting - identify assumptions and concepts adn correct entries. The company ...
accounting - You are provided with the following information for Pavey Inc. for ...
accounting - A company purchased 1000 units of inventory on September 25 and the...

For Further Reading

First Name:
School Subject:
Answer: