Problem 5-22A Estimating ending inventory: gross margin method LO 5-4 [The following information applies to the questions displayed below.) The inventory of Don's Grocery was destroyed by a tornado on October 6 of the current year. Fortunately, some of the accounting records were at the home of one of the owners and were not damaged. The following information was available for the period of January 1 through October 6: Beginning inventory, January 1 Purchases through October 6 Sales through October 6 $ 140,000 670,000 1,100,000 Gross margin for Don's has traditionally been 30 percent of sales. Problem 5-22A Part b b. Assume that $15,000 of the inventory was not damaged. What is the amount of the loss from the tornado? Total loss