Ola
A
Let’s play.🤣

Someone steals a $100 bill from a store register, then buys $70 worth of goods at that store using the $100 bill and gets a $30 balance.

How much money did the store lose?
06:23 AM - Jul 23, 2023
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Mary Weigle
A
In response to Ola.
$170 not allowing for profit on items purchased/stolen.
09:56 AM - Jul 23, 2023
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Ola
A
In response to Mary Weigle.
Wrong.

The $100 bill that was stolen was then given back to the owner. What the owner loses is the $70 worth of goods and the $30 in change, which makes for a total of $70 + $30 = $100.

The owner has lost $100. Easy-peasy.🤣
11:08 AM - Jul 23, 2023
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Tony_Bell
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You're on the right track, but your calculation assumes the retailer sold the item purchased at the retailer's cost to buy it. Retailer's generally don't do that.

Your calculation omits COGS.

SALES - COGS - EXPENSES = NET INCOME (LOSS)
In response to Ola.
04:06 PM - Jul 23, 2023
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Ola
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In response to Tony_Bell.
🥹
09:13 PM - Jul 23, 2023
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Tony_Bell
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In response to Ola.
You clearly don't know what your doing or talking about. The question you posed is a typical ACCT101 homework question.

Your question referred to a sale of goods, not services, therefore the cost of inventory (cost of goods sold; COGS) must be included in any calculation of net income/loss.
10:54 AM - Jul 24, 2023 (Edited)
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Tony_Bell
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In response to Ola.
The P&L impact is seen in the journal entries for the events you noted

Dr. Theft Loss $100
Cr. Cash $100
To record a theft of cash

Dr. Cash $70
Dr. COGS $35 (assumed)
Cr. Sales $70
CR. inventory $35 (assumed)
To record sale of goods

Q.E.D
11:02 AM - Jul 24, 2023
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