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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
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 per cent.
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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:
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Merchandise inventory, January 1 USD 672,000
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Merchandise purchases USD 9,408,000
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Purchase returns USD 134,400
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Transportation-in USD 504,000
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Sales USD 14,336,000
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Sales returns USD 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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