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
A
In response to Ola.
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)
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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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
In response to Ola.
11:02 AM - Jul 24, 2023
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