Question: on september 22 2018 a flood destroyed the entire merchandise...
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||%|
Complete the below table to estimate the cost of inventory destroyed in the flood using the gross profit method.