On September 1 of the Current Year,Scots Company Experienced a Flood

question 97

Multiple Choice

On September 1 of the current year,Scots Company experienced a flood that destroyed the company's entire inventory.Because the company had not completed its month end reporting for August,it must estimate the amount of inventory lost using the gross profit method.At the beginning of August,the company reported beginning inventory of $215,450.Inventory purchased during August was $192,530.Sales for the month of August were $542,500.Assuming the company's typical gross profit ratio is 40%,estimate the amount of inventory destroyed in the flood.

• A)$87,480
• B)$134,520
• C)$109,980
• D)$82,480
• E)$81,480

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Definitions:

Disequilibrium

A state of cognitive imbalance or conflict that arises when new information contradicts existing beliefs or knowledge, driving the process of learning and adaptation.

Secondary Circular Reaction

A stage in Piaget's theory of cognitive development where infants (around 4-8 months) repeat actions that affect their environment, showing an early understanding of cause and effect.

Sensorimotor Stage

A developmental phase from birth to about 2 years of age, in Jean Piaget's theory, where infants learn about their environment through their sensory and motor interactions.

Nonsymbolic Aspects

Elements or features not represented by symbols or not involving symbolic representation or thought, often relating to direct, concrete experiences.