Asteroid Sales Corp.was organized on January 1,2013.On December 31,2014,the company lost most of its inventory in a warehouse fire just before the year-end count of inventory was to take place.Data from the records disclosed the following:
On January 1,2014,Asteroid's pricing policy was changed so that the gross profit rate would be 3 percentage points higher than the one earned in 2013.
Salvaged undamaged merchandise was marked to sell at $24,000,while damaged merchandise marked to sell at $16,000 had an estimated net realizable value of $3,600.
Determine the company's inventory loss due to the fire that occurred on December 31,2014.

Question

Asteroid Sales Corp.was organized on January 1,2013.On December 31,2014,the company lost most of its inventory in a warehouse fire just before the year-end count of inventory was to take place.Data from the records disclosed the following:
  On January 1,2014,Asteroid's pricing policy was changed so that the gross profit rate would be 3 percentage points higher than the one earned in 2013.
Salvaged undamaged merchandise was marked to sell at $24,000,while damaged merchandise marked to sell at $16,000 had an estimated net realizable value of $3,600.
Determine the company's inventory loss due to the fire that occurred on December 31,2014.

Quizplus · Accepted Answer

The Answer of Asteroid Sales Corp.was organized on January 1,2013.On December 31,2014,the company lost most of its inventory in a warehouse fire just before the year-end count of inventory was to take place.Data from the records disclosed the following:
  On January 1,2014,Asteroid's pricing policy was changed so that the gross profit rate would be 3 percentage points higher than the one earned in 2013.
Salvaged undamaged merchandise was marked to sell at $24,000,while damaged merchandise marked to sell at $16,000 had an estimated net realizable value of $3,600.
Determine the company's inventory loss due to the fire that occurred on December 31,2014.