fx A11 Instructions: Prepare a formal labeled schedule computing the fire loss incurred using the gross profit method of estimating inventory. B D E F G H K 1 Higgs Company lost most of its inventory in a fire in November just before the year end physical inventory was taken. Corporate records disclose the followi 2 3 Inventory (beginning) 186,000 4 Sales 863,000 5 Purchases 667,000 6 Sales returns 64,000 7 Purchase returns 46,000 8 Gross profit based on net selling price is 25%. Merchandise with a selling price of $65,000 remained 9 undamaged after the fire, and damaged merchandise has a salvage value of $26,400. The company does not carry fire insurance on its inventory. 10 11 Instructions: Prepare a formal labeled schedule computing the fire loss incurred using the gross profit method of estimating inventory. 12 SHOW ALL WORK FOR FULL CREDIT 13 14 15 16 17 18 19 20