Question: Chapter 8 problem: 1- Gross profit method. On December 31,2010 Felt Company's inventory burned. Sales for the year had been $1,400,000 and $980,000,respectively. The beginning

Chapter 8 problem: 1- Gross profit method. On December 31,2010 Felt Company's inventory burned. Sales for the year had been $1,400,000 and $980,000,respectively. The beginning inventory (January.1,2010)was $170,000,in the past Felt's gross profit has averaged 40%of selling price. Instructions:- Compute the estimated cost of inventory burned give entries as of December31,2010to close merchandise.

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