Adidas inventory was destroyed by a hurricane on January 1, 2021. The following information was available...

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Adidas inventory was destroyed by a hurricane on January 1, 2021. The following information was available for calendar 2020: Sales....... Net purchases..... Beginning inventory $850,000 700,000 110,000 Adidas gross profit on sales has averaged 40% for several years. Required a) Calculate the estimated cost of the inventory destroyed. b) Prepare entries at December 31, 2020, to close the accounts. Adidas inventory was destroyed by a hurricane on January 1, 2021. The following information was available for calendar 2020: Sales....... Net purchases..... Beginning inventory $850,000 700,000 110,000 Adidas gross profit on sales has averaged 40% for several years. Required a) Calculate the estimated cost of the inventory destroyed. b) Prepare entries at December 31, 2020, to close the accounts.