Author Question: On June 13, Hagen Products sustained a warehouse fire in which all of the merchandise was destroyed. ... (Read 119 times)

segrsyd · **on:** Jun 24, 2018

On June 13, Hagen Products sustained a warehouse fire in which all of the merchandise was destroyed. Company records indicate that at the time of the fire the net sales to date were 2,438,500. Hagen had a beginning inventory of 658,300 and net purchases were 1,562,850. They have maintained a gross margin of 35 on sales over the past three years. Use the gross margin method to estimate the inventory loss for the insurance claim.

Question 2

What was the trade discount rate if goods with a list price of 10,600 were sold at a net price of 8,250? (Round to the nearest tenth)
A) 79.1
B) 22.2
C) 36.4
D) 28.3