Question - You are called by Tim Duncan of Splish 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 $36,300
Purchases-goods placed in stock July 1- 1590,300
Sales revenue-goods delivered to customers (gross) 125,700
Sales returns-goods returned to stock 3,600
Your client reports that the goods on hand on July 16 cost $32,800, but you determine that this figure includes goods of $6,000 received on a consignment basis. Your past records show that sales are made at approximately 25% over cost. Duncan's insurance covers only goods owned.
Compute the claim against the insurance company.