On June 17,it was discovered that a material amount of inventory had been stolen.A physical count discloses that $55,000 of merchandise was on hand as of June 17.The following additional data is available from the accounting records:
Records indicate that the company's gross profit has averaged 40 percent of selling prices.
Required:
Estimate the amount of loss due to theft.

Question

On June 17,it was discovered that a material amount of inventory had been stolen.A physical count discloses that $55,000 of merchandise was on hand as of June 17.The following additional data is available from the accounting records:
  Records indicate that the company's gross profit has averaged 40 percent of selling prices.
Required:
Estimate the amount of loss due to theft.

Quizplus · Accepted Answer

The Answer of On June 17,it was discovered that a material amount of inventory had been stolen.A physical count discloses that $55,000 of merchandise was on hand as of June 17.The following additional data is available from the accounting records:
  Records indicate that the company's gross profit has averaged 40 percent of selling prices.
Required:
Estimate the amount of loss due to theft.

On June 17,it Was Discovered That a Material Amount of Inventory