Estimating Inventory Using Gross Profit Method Lin Co sells its merchandise at a gross margin of 30 on sales The following amounts pertain to Lins operations for the six months ended June 30, 2020 Sales $160,000 Beginning inventory 40,000 Purchases 104,000 On June 30, 2020, Lins inventory is destroyed by fire Compute the estimated cost of this destroyed inventory $Answer

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Question: Estimating Inventory Using Gross Profit Method Lin Co. sells its merchandise at a gross margin of 30% on sales. The following amounts pertain to Lins

Estimating Inventory Using Gross Profit Method

Lin Co. sells its merchandise at a gross margin of 30% on sales. The following amounts pertain to Lins operations for the six months ended June 30, 2020.

Sales	$160,000
Beginning inventory	40,000
Purchases	104,000

On June 30, 2020, Lins inventory is destroyed by fire.

Compute the estimated cost of this destroyed inventory. $Answer

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