Totally Tunes sells and installs audio equipment During a recent
Totally Tunes sells and installs audio equipment. During a recent fire that occurred at its warehouse, Totally Tunes’ entire inventory was destroyed. Totally Tunes’ accounting records reflect the following information.
Beginning Inventory ........ $ 46,400
Net Purchases ........... 243,900
Net Sales ............ 404,000
Gross Profit Rate ........ 35%
Requirement
Use the gross profit method to estimate the amount of Totally Tunes’ inventory loss.
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