Several years ago, a corporation set up a reserve for storm losses in the amount of $300,000 as an appropriation of retained earnings.During the current year, the company suffered a $85,000 hurricane loss that was not covered by insurance.The firm reduces appropriations when their purpose has been fulfilled.Give the entry(s)to record the loss and provide any appropriate explanation.

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The Answer of Several years ago, a corporation set up a reserve for storm losses in the amount of $300,000 as an appropriation of retained earnings.During the current year, the company suffered a $85,000 hurricane loss that was not covered by insurance.The firm reduces appropriations when their purpose has been fulfilled.Give the entry(s)to record the loss and provide any appropriate explanation.

Several Years Ago, a Corporation Set Up a Reserve for Storm