Collins Computers stored its inventory in a warehouse that was destroyed by a fire in late November,2014.Its sales office was at a different location.In order to file a claim with the insurance company,the company's manager asks you to estimate the inventory in the warehouse.The following information is available: The company's gross profit has historically been 40% of Net sales revenue.Estimate the value of the inventory destroyed in the fire using the gross profit method.

Question

Collins Computers stored its inventory in a warehouse that was destroyed by a fire in late November,2014.Its sales office was at a different location.In order to file a claim with the insurance company,the company's manager asks you to estimate the inventory in the warehouse.The following information is available:  The company's gross profit has historically been 40% of Net sales revenue.Estimate the value of the inventory destroyed in the fire using the gross profit method.

Quizplus · Accepted Answer

The Answer of Collins Computers stored its inventory in a warehouse that was destroyed by a fire in late November,2014.Its sales office was at a different location.In order to file a claim with the insurance company,the company's manager asks you to estimate the inventory in the warehouse.The following information is available:  The company's gross profit has historically been 40% of Net sales revenue.Estimate the value of the inventory destroyed in the fire using the gross profit method.

Collins Computers Stored Its Inventory in a Warehouse That Was