Question: Master Blaster, Inc., sells and installs audio equipment. During a recent fire that occurred at its warehouse, Master Blaster, Inc.'s entire inventory was destroyed. Master

Master Blaster, Inc., sells and installs audio equipment. During a recent fire that occurred at its warehouse, Master Blaster, Inc.'s entire inventory was destroyed. Master Blaster, Inc.'s accounting records reflect the following information.

Beginning Inventory ..................................................... $ 63,000

Net Purchases ............................................................ 243,900

Net Sales .................................................................. 404,000

Gross Profit Rate .............................................................. 30%

Requirement

Use the gross profit method to estimate the amount of Master Blaster, Inc.'s inventory loss?

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