The following information is available for October for Jordan Company. $\begin{array}{lr}
\text { Beginning inventory } & \$ 50,000 \
\text { Net purchases } & 150,000 \
\text { Net sales } & 300,000 \
\text { Percentage markup on cost } & 66.67 \%
\end{array}$
A fire destroyed Jordan's October 31 inventory, leaving undamaged inventory with a cost of $3,000.Using the gross profit method, the estimated ending inventory destroyed by fire is
A)$17,000.
B)$77,000.
C)$80,000.
D)$100,000.

Question

The following information is available for October for Jordan Company. $\begin{array}{lr}
\text { Beginning inventory } & \$ 50,000 \
\text { Net purchases } & 150,000 \
\text { Net sales } & 300,000 \
\text { Percentage markup on cost } & 66.67 \%
\end{array}$ 
A fire destroyed Jordan's October 31 inventory, leaving undamaged inventory with a cost of $3,000.Using the gross profit method, the estimated ending inventory destroyed by fire is
A)$17,000.
B)$77,000.
C)$80,000.
D)$100,000.

Quizplus · Accepted Answer

The Answer of The following information is available for October for Jordan Company. $\begin{array}{lr}
\text { Beginning inventory } & \$ 50,000 \
\text { Net purchases } & 150,000 \
\text { Net sales } & 300,000 \
\text { Percentage markup on cost } & 66.67 \%
\end{array}$ 
A fire destroyed Jordan's October 31 inventory, leaving undamaged inventory with a cost of $3,000.Using the gross profit method, the estimated ending inventory destroyed by fire is
A)$17,000.
B)$77,000.
C)$80,000.
D)$100,000.

The Following Information Is Available for October for Jordan Company