Question: I am looking for help with this general accounting question using proper accounting standards. A company's warehouse was damaged by a flood on November 18.

I am looking for help with this general accounting question using proper accounting standards.

A company's warehouse was damaged by a flood on November 18. The following information was taken from the company's accounting records: January 1 Merchandise Inventory = $180,000 Net Purchases from January 1 to November 18 = $1,120,000 Net Sales from January 1 to November 18 = $2,000,000 Estimated Gross Profit Rate = 40% Estimate the cost of the merchandise destroyed by the flood

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