Gross Profit Method A fire completely destroyed all the inventory of Glisan Lumber Yard on August 5, 20 Fortunately, the accounting records were not destroyed in the fire The following information is provided by Glisan Lumber Yard for the time period January 1 through August 5 Beginning inventory, January 1, 20 $100,000 Net purchases, January 1 through August 5 420,000 Net sales, January 1 through August 5 732,000 Normal gross profit as a percentage of sales 40 Required Estimate the amount of merchandise inventory destroyed in the fire on August 5 using the gross profit method $

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Question: Gross Profit Method A fire completely destroyed all the inventory of Glisan Lumber Yard on August 5, 20--. Fortunately, the accounting records were not destroyed

Gross Profit Method

A fire completely destroyed all the inventory of Glisan Lumber Yard on August 5, 20--. Fortunately, the accounting records were not destroyed in the fire. The following information is provided by Glisan Lumber Yard for the time period January 1 through August 5:

Beginning inventory, January 1, 20--	$100,000
Net purchases, January 1 through August 5	420,000
Net sales, January 1 through August 5	732,000
Normal gross profit as a percentage of sales	40 %

Required:

Estimate the amount of merchandise inventory destroyed in the fire on August 5 using the gross profit method. $

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