Question: Poundmaker Company just had a fire in its warehouse that destroyed all of its merchandise inventory. The insurance company covers 80% of the loss. The

Poundmaker Company just had a fire in its warehouse that destroyed all of its merchandise inventory. The insurance company covers 80% of the loss. The following information is available regarding the year ended March 31, 2014:

Required:
Prepare an estimate of the company's loss using the retail method.

At Cost At Retail Purchases...1,050,000 1,750,000 200,000 125,000 5,000 Transportation-in... ales... 1,357,500 17,500

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