Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

تمرين 22

When Mary Potts arrived at her store on the morning of January 29, she found empty shelves and display racks; thieves had broken in during the night and stolen the entire inventory.ccounting records showed that inventory costing $50,000 on January 1.rom January 1 to January 29, Potts had made net sales of $70,000 and net purchases of $80,000.he gross profit during the past several years had consistently averaged 42 percent of net sales.otts plans to file an insurance claim for the theft loss.
a.sing the gross profit method, estimate the cost of inventory at the time of the theft.
b.oes Potts use the periodic inventory method or does she account for inventory using the perpetual method Defend your answer.