An earthquake caused heavy damage to the Sellwood Antique Store on May 3, 20X8. All merchandise was destroyed. Some accounting data are missing. In conjunction with an insurance investigation, you have been asked to estimate the cost of the inventory destroyed. The following data for 20X8 (recorded before the earthquake) areavailable:

Transcribed Image Text:

Cash discounts on purchases 2,000 Inventory, December 31, 20X7 Gross sales Sales returns and allowances 24,000 Inward transportation Gross purchases 38,000 7,000 4,000 280,000 Purchase returns and allowances 159,000 Gross profit percentage on net sales 45%