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Class+Exercise+from+3-13-09 - ACCT 2101 CLASS EXERCISE DATE...

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Unformatted text preview: ACCT 2101 CLASS EXERCISE DATE: FRIDAY, 3/13/09 Topic: Gross Margin Estimation of Inventory Name Section 'l‘his Class Exercise is to be completed in lieu of attendance in class on Friday, 3/13/09. That is, there is NO LECTURE on that date. You may submit this Class Exercise any time before 12 noon on the due date. You may bring your completed exercise to class on Wednesday (the day of Quiz 4) or drop it in the submission box in the Undergraduate Commons (near your file bins) until the deadline. You may also treat this Class Exercise as one of your drops if you prefer. This Class Exercise is Exercise 7—1 7 from your textbook. Therefore, you may check your solution on T—Square before submitting it. Tilley-Mill Company takes a physical inventory at the end of each calendar-year accounting period to establish the ending inventory amount for financial statement purposes. Its financial statements for the past few years indicate an average gross margin on net sales of 25%. On July 18, a fire destroyed the entire store building and its contents. The records in a fireproof vault were intact. Through July 17, these records Show: Merchandise inventory, January 1 $ 672,000 Merchandise purchases 9,408,000 Purchase returns 134,400 Transportatiomin 504,000 Sales 14,335,000 Sales returns 672,000 The company was fully covered by insurance and asks you to determine the amount of its claim for loss of merchandise. ...
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