Exercise $9-8($Algo$)$ Gross profit method $[$LO$9-2]$

On September $22,2024,$ a flood destroyed the entire merchandise inventory on hand in a warehouse owned by the Rocklin Sporting Goods Company. The following information is available from the records of the company's periodic inventory system:

Inventory, January $1,2024$

Net purchases, January $1$ through September $22$

Net sales, January $1$ through September $22$

Gross profit ratio

$$156,000$

$386,000$

$630,000$

$20\%$

Required:

Complete the below table to estimate the cost of inventory destroyed in the flood using the gross profit method.

$\backslash$table$[[$Beginning inventory,,$$,156,000],[$Plus Net purchases,,,$386,000],[$Cost of goods available for sale,,,$542,000],[$Less: Cost of goods sold:$],[$Net sales,$630,000,,],[$Less: Estimated gross profit$],[$Estimated cost of goods sold,,,$630,000],[$Estimated cost of inventory destroyed,,$$,(88,000)$