Beginning Accounting Problem (Inventory Problem, Very Short)?

Question

The inventory of Lemon Company was destroyed by fire on March 1. From an examination of the accounting records, the following data for the first 2 months of the year are obtained: Sales $51,000, Sales Returns and Allowances $1,000, Purchases $31,200, Freight-in $1,200, and Purchase Returns and Allowances $1,400. Determine the merchandise lost by fire, assuming:

(a) A beginning inventory of $20,000 and a gross profit rate of 30% on net sales.

***I know the formula but I am not sure what to do with sales and purchases returns/allowances and freight-in....Not sure where to add or subtract from for those 3 things***

Answer 1

Let's get everything ready first.

Sales $51,000
Sales Returns ($1,000)
= Net sales $50,000

Purchases $31,200
Freight-in $1,200
Purchase Returns ($1,400)
= Inventory purchases $31,000

If gross profit rate is 30% on net sales, COGS must be 70% of net sales, so COGS = 0.7 x $50,000 = $35,000

Now we put them all together using the formula:
Beginning inventory $20,000
Add Inventory purchases $31,000
Less COGS ($35,000)
= Ending inventory $16,000

So merchandise lost in the fire is $16,000.

Answer 2

a million. replace the whole expression of h(x) for the x in g(x) 2. stretch the graph vertically by employing a ingredient of four. then circulate the graph upwards a million unit. 3. multiply the numerator and the denominator by employing i. i^2= -a million. that's the form you simplify it. 4. for this one, remedy the equation f(x)=0 first. There lies a treasure chest on your innovations. Why no longer dig it out?