Estimation of Theft Loss
Response to the following problem:
You are requested by a client on September 28 to prepare an insurance claim for a theft loss that occurred on that day. You immediately take an inventory and obtain the following data:
Inventory, September 1 $38,000 Sales, September 1-September 28 $52,000
Purchases received, September 1-September 28 19,000 Sales returns 1,000
The inventory on September 28 indicates that an inventory of $15,000 remains after the theft. During the past year, net sales were made at 50% above the cost of goods sold.
Required
Compute the inventory lost during the theft.