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Question: on september 22 2018 a flood destroyed the entire merchandise...

Question details

On September 22, 2018, a flood destroyed the entire merchandise inventory on hand in a warehouse owned by the Rocklin Sporting Goods Company. The following information is available from the records of the company’s periodic inventory system:

Inventory, January 1, 2018 $ 154,000
Net purchases, January 1 through September 22 384,000
Net sales, January 1 through September 22 620,000
Gross profit ratio 20 %


Required:
Complete the below table to estimate the cost of inventory destroyed in the flood using the gross profit method.

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