Catskill Company uses a periodic inventory system.On January 1,20X3,the company had beginning inventory of $979,000.From January 1 to April 27,the company purchased $285,000 of inventory and had sales revenue of $840,000.On the morning of April 28,an earthquake occurred which resulted in the total loss of all inventory.The company's gross profit percentage has averaged 40%.What is the estimated inventory loss due to the earthquake?

Question

Quizplus · Accepted Answer

The Answer of Catskill Company uses a periodic inventory system.On January 1,20X3,the company had beginning inventory of $979,000.From January 1 to April 27,the company purchased $285,000 of inventory and had sales revenue of $840,000.On the morning of April 28,an earthquake occurred which resulted in the total loss of all inventory.The company's gross profit percentage has averaged 40%.What is the estimated inventory loss due to the earthquake?

Catskill Company Uses a Periodic Inventory System