The following information is available for October for Horton Company. $\begin{array}{lr}
\text { Beginning inventory } & \$ 100,000 \
\text { Net purchases } & 300,000 \
\text { Net sales } & 600,000 \
\text { Percentage markup on cost } & 66.67 \%
\end{array}$
A fire destroyed Horton's October 31 inventory, leaving undamaged inventory with a cost of $6,000.Using the gross profit method, the estimated ending inventory destroyed by fire is
A)$34,000.
B)$154,000.
C)$160,000.
D)$200,000.

Question

The following information is available for October for Horton Company. $\begin{array}{lr}
\text { Beginning inventory } & \$ 100,000 \
\text { Net purchases } & 300,000 \
\text { Net sales } & 600,000 \
\text { Percentage markup on cost } & 66.67 \%
\end{array}$ 
A fire destroyed Horton's October 31 inventory, leaving undamaged inventory with a cost of $6,000.Using the gross profit method, the estimated ending inventory destroyed by fire is
A)$34,000.
B)$154,000.
C)$160,000.
D)$200,000.

Quizplus · Accepted Answer

The Answer of The following information is available for October for Horton Company. $\begin{array}{lr}
\text { Beginning inventory } & \$ 100,000 \
\text { Net purchases } & 300,000 \
\text { Net sales } & 600,000 \
\text { Percentage markup on cost } & 66.67 \%
\end{array}$ 
A fire destroyed Horton's October 31 inventory, leaving undamaged inventory with a cost of $6,000.Using the gross profit method, the estimated ending inventory destroyed by fire is
A)$34,000.
B)$154,000.
C)$160,000.
D)$200,000.

The Following Information Is Available for October for Horton Company