| Course | AC300 Intermediate Accounting I |
|---|---|
| Unit | Unit 9 |
| Paper type | Seminar reflection |
| Length | About 790 words, 5 pages double-spaced |
| Format | APA 7 student paper |
| School | Purdue University Global |
| Program | BS in Accounting |
| Updated | October 2026 |
Free sample paper for AC300 Unit 9
$170,000 or $158,400 for the Same Burned Stock: A Unit 9 Seminar Reflection on Two Ways to Estimate Lost Inventory
[Student Name]
Purdue University Global
AC300: Intermediate Accounting I
Unit 9 Seminar Reflection
[Instructor Name]
[Date]
Ridgeway Outfitters, its records and the fire are composite; the textbook, standard and interpretation cited are real.
The Case
Ridgeway's records survived in the cloud even though the stock did not. From January 1 to the date of the fire, the store had beginning inventory of $220,000 at cost and purchases of $610,000 at cost, so $830,000 of goods were available. Sales to the date of the fire were $1,000,000. The store also tracks retail prices: beginning inventory $340,000 at retail, purchases $950,000 at retail, net markups $20,000 and markdowns $60,000, most of them from a late-autumn clearance of tents and down jackets that sold poorly in a warm fall.
My First Answer
I used the gross profit method because it was faster. Ridgeway's gross margin over the past three years averaged 34 percent, so cost of goods sold for the year to date was 66 percent of $1,000,000, or $660,000. Inventory at the fire: $830,000 minus $660,000 equals $170,000. I said this would be the store's claim and the loss on its statements.
What the Retail Method Showed
A classmate worked the retail method. The cost-to-retail ratio, using the conventional approach that includes markups but excludes markdowns, was $830,000 divided by $1,310,000, or 63.4 percent. Ending inventory at retail was $1,310,000 less markdowns of $60,000 and sales of $1,000,000, or $250,000. At cost: $250,000 times 63.4 percent, about $158,400.
The two methods disagreed by $11,600 for one reason: the gross profit method assumed this year's margin matched the past three, but this year's heavy markdowns meant the store had already sold more of its goods at lower prices than history suggested.
Why I Changed My Mind
At first I defended my figure because it used a long average. The instructor asked whether anything about this year made the average a poor guide. The markdowns did. A 34 percent margin applied to a year with $60,000 of clearance pricing assumes the store earned more on each sale than it actually did, so it understates cost of goods sold and overstates what was left on the shelf. The retail method uses this year's own pricing, so it reflects the markdowns directly (Kieso et al., 2019).
There was a second reason to prefer the smaller figure. Ridgeway will submit a claim to its insurer and record the loss. Overstating destroyed inventory would overstate both the claim and any gain or loss on the involuntary conversion, and an insurer's adjuster will test the figure against the store's own retail records. When insurance proceeds differ from the carrying amount of destroyed assets, the difference is recognized as a gain or loss (Financial Accounting Standards Board, 1979), so a defensible carrying amount matters to the statements as well as the claim.
Could the Gross Profit Method Be Repaired?
Another classmate suggested keeping the gross profit method but adjusting the rate. If the markdowns are treated as lost margin, this year's gross margin would be closer to 33 percent than 34, and the method would then estimate about $160,000, close to the retail figure. I found that persuasive, but it also shows the weakness of the method: the answer depends almost entirely on the rate chosen, and the rate itself has to be inferred from the same retail records the other method uses directly. If the store has reliable retail records, using them is more transparent than adjusting a historical average to match them.
How the Insurer Will Test It
The adjuster will ask for the purchase invoices, the sales register totals and the markdown log, and will likely rebuild both estimates. Presenting the retail estimate with its supporting records, and the gross profit estimate as a reasonableness check, gives the adjuster less to dispute and gives the store a figure it can defend.
What Still Bothers Me
Neither figure is a count. Both rest on records and on assumptions, the gross profit method on history and the retail method on how consistently markups and markdowns were recorded. If a clerk skipped recording some markdowns, the retail figure would be too high. Inventory standards treat these methods as estimates for situations where a count is impossible, not substitutes for one (Financial Accounting Standards Board, 2015).
What I Will Do Differently
When an estimate rests on a historical rate, I will first ask whether the current period resembles the history. If it does not, I will look for a method that uses the current period's own data, and I will show both figures with the reason I chose one.
References
Financial Accounting Standards Board. (1979). Accounting for involuntary conversions of nonmonetary assets to monetary assets (FASB Interpretation No. 30). https://www.fasb.org
Financial Accounting Standards Board. (2015). Inventory (Topic 330): Simplifying the measurement of inventory (Accounting Standards Update No. 2015-11). https://www.fasb.org
Kieso, D. E., Weygandt, J. J., & Warfield, T. D. (2019). Intermediate accounting (17th ed.). Wiley.
What the AC300 Unit 9 assignment asks for
The ninth unit's seminar in AC300 works through a case, and the reflection asks students to record what they thought before the session, what changed and why. Write in your own voice, following the order of the discussion rather than a textbook outline. Start with the case facts in a short paragraph so a reader can follow the numbers. Give your first answer and the reasoning behind it. Then describe what the seminar raised, crediting classmates without names. Explain the change of view with the specific reason, here a year that did not match the historical margin. Add the practical stakes, such as an insurance claim or the financial statements. Acknowledge what remains uncertain. Close with a habit you will carry forward. Two to three pages in APA 7 suits most sections, with the textbook and any standard cited where they support a point.
Inside the AC300 Unit 9 example
The sample opens with the case: beginning inventory of $220,000, purchases of $610,000 and sales of $1,000,000, plus the store's retail figures, markups and $60,000 of markdowns. The first answer applies a 34 percent margin to reach $170,000. The next section works the conventional retail method to $158,400. The highlighted sentence names the single reason the methods disagree. A section on changing course explains how the markdowns made the long average overstate the stock, and adds the insurance claim and the gain or loss on involuntary conversion. A classmate's repaired rate of 33 percent is considered and judged weaker than using the retail records directly. Sections on the adjuster's likely tests and on the limits of both estimates follow. The reflection ends with a habit: test whether the current period resembles the history first.
AC300 Unit 9 rubric: what earns full points
Reflection points in AC300 go to how clearly the change in thinking is traced, from the first answer through the challenge to the revised view. The accounting must still be right, so both computations are checked. A reflection that explains why the methods differ, rather than only that they differ, earns the analytical credit. Connecting the estimate to consequences such as an insurance claim or the statements shows professional judgment. Acknowledging the limits of the chosen figure earns credit for honesty and depth. Crediting the seminar's contributions without naming classmates follows Purdue Global's expectations for reflections. A specific closing habit scores better than a general statement about learning. First-person voice, organized sections and APA 7 citations to the textbook and the involuntary conversion guidance complete the reflection.
AC300 Unit 9 help from the desk
Seminar reflections in accounting often become a summary of the session with no personal change, which misses the purpose of the assignment. Others describe a change of mind without the reason that caused it. Some students rework the problem at length and leave little room for reflection. The retail method is sometimes computed with markdowns included in the ratio, which turns the conventional approach into the average cost approach. Insurance and financial statement effects are left out, so the stakes never appear. Classmates are named, which reflections should avoid. A closing line such as saying the seminar was helpful earns nothing; a habit you will use does. If your seminar used a different case, such as a flood or theft, a writer can draft the reflection from your notes and the numbers your section worked.
Get an AC300 Unit 9 example written to your instructions
The facilitator's figures from Unit 9, a summary of the discussion and the rubric get the draft started, and sections running a written alternative can forward its prompt in their place. A draft comes back within 24-48h with the table built on those numbers. The first custom sample is free, and the classmate exchange you remember can be added before submitting. The paper above is an original model document written by our desk, not a submitted student paper and not an official Purdue University Global document.
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AC300 Unit 9 questions, answered
Should the reflection mention what classmates said?
Yes, briefly and without names. The change of mind in this sample comes from a classmate's point about markdowns, and crediting it that way shows the discussion did the work. A reflection that presents every insight as the writer's own misses what the seminar is for, and most AC300 rubrics reward engagement with the session's exchange, not only its content.
Which estimate should the reflection conclude is correct?
Neither is correct in the sense a count would be. The reflection argues that the retail estimate is more defensible here because it reflects this year's pricing, and it grants that the historical margin would serve better in a year with stable markups. That conditional conclusion scores better than declaring one method right in every case, which the seminar usually challenges.
What if the seminar used different numbers from the textbook case?
Then the reflection uses the seminar's numbers, since the rubric asks about the session attended. Facilitators often change the margin or the markdowns to widen or narrow the gap between methods, and the explanation paragraph adjusts to match. When markdowns are small the two estimates nearly converge, and a strong reflection says what that convergence would mean for choosing between them.
Where can I find a free AC300 Unit 9 sample paper?
This page holds a complete AC300 Unit 9 seminar reflection on a composite outdoor-gear store's fire, comparing a $170,000 gross profit estimate with a $158,400 retail estimate, with notes and APA 7 references.
Why does the AC300 Unit 9 reflection prefer the retail method?
The store's $60,000 of markdowns meant this year's margin was lower than the three-year average. The retail method uses this year's own prices, so it reflects the markdowns directly.