Question -
You are called by Tim Duncan at Sarasota Co. on July la and asked to prepare a claim tar insurance as a result of a theft that that place the night before. You suggest that an Inventory be taken immediately. The following data are available,
Inventory, July 1 - $ 40,800
Purchase-goods placed in stock July 1-15 - 84,800
Sales revenue - goods delivered to customers (gross) - 118,600
Sales returns-goods returned to stock - 4,400
Your client reports that the goods on hand on July 16 cost $28,300, but you determine that this figure includes goods of $5,600 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.