Exercise 5-14A Estimating ending inventory LO 5-4 A substantial portion of inventory owned by Prentiss Sporting Goods was recently destroyed when the roof rainstorm. Prentiss also lost some of its accounting records. Prentiss must estimate the loss from the storm financial statement purposes. Prentiss uses the periodic inventory system. The following accounting informa the damaged records: Beginning inventory Purchases to date of storm Sales to date of storm $ 202,000 401,400 597,800 The value of undamaged inventory counted was $119,316. Historically, Prentiss's gross margin percentage percent of sales. Required Estimate the following: a. Gross margin in dollars. Gross margin Next a. Gross margin in dollars. Gross margin b. Cost of goods sold in dollars. Cost of goods sold c. Ending inventory. Estimated ending inventory d. Amount of lost inventory. Inventory lost Exercise 5-14A Estimating ending inventory LO 5-4 A substantial portion of inventory owned by Prentiss Sporting Goods was recently destroyed when the roof collapsed during a rainstorm. Prentiss also lost some of its accounting records, Prentiss must estimate the loss from the storm for insurance reporting and financial statement purposes. Prentiss uses the periodic inventory system. The following accounting information was recovered from the damaged records: Beginning inventory Purchases to date of storm Sales to date of storm $ 202,000 401,400 597,800 The value of undamaged inventory counted was $119.316. Historically, Prentiss's gross margin percentage has been approximately 22 percent of sales