Gross profit method In the early morning of January 1, 2015, Minnesota Corp.'s inventory was destroyed by fire.The following information was available for calendar 2014: Minnesota's gross profit on sales has averaged 35% for several years. Inventory 8 - 51 Instructions
a)Calculate the estimated cost of the inventory destroyed.
b)Prepare entries at December 31, 2014 to close the sales and merchandise accounts.

Question

Gross profit method In the early morning of January 1, 2015, Minnesota Corp.'s inventory was destroyed by fire.The following information was available for calendar 2014:  Minnesota's gross profit on sales has averaged 35% for several years. Inventory 8 - 51 Instructions 
a)Calculate the estimated cost of the inventory destroyed.
b)Prepare entries at December 31, 2014 to close the sales and merchandise accounts.

Quizplus · Accepted Answer

The Answer of Gross profit method In the early morning of January 1, 2015, Minnesota Corp.'s inventory was destroyed by fire.The following information was available for calendar 2014:  Minnesota's gross profit on sales has averaged 35% for several years. Inventory 8 - 51 Instructions 
a)Calculate the estimated cost of the inventory destroyed.
b)Prepare entries at December 31, 2014 to close the sales and merchandise accounts.

Gross Profit Method in the Early Morning of January 1