Duncans insurance covers only goods owned compute the claim


You are called by Tim Duncan of Spurs Co. on July 16 and asked to prepare a claim for insurance as a result of a theft that took place the night before. You suggest that an inventory be taken immediately. The following data are available.

Inventory, July 1 $ 39,230
Purchases-goods placed in stock July 1-15 91,550
Sales revenue-goods delivered to customers (gross) 118,800
Sales returns-goods returned to stock 4,310

Your client reports that the goods on hand on July 16 cost $35,440, but you determine that this figure includes goods of $7,470 received on a consignment basis. Your past records show that sales are made at approximately 40% over cost. Duncan's insurance covers only goods owned.

Compute the claim against the insurance company. (Round answer to 0 decimal places, e.g. 28,987.)

 

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Accounting Basics: Duncans insurance covers only goods owned compute the claim
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