On July 24, a tornado destroyed Astro Wholesalers' main warehouse and all its contents. Company records...

 

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On July 24, a tornado destroyed Astro Wholesalers' main warehouse and all its contents. Company records indicate that at the time of the tornado, the net sales to date were $535,100 and the purchases were $422,900. The beginning inventory on January 1 was $319,800. For the past three years, the company has maintained a gross margin of 35%. Use the gross profit method to estimate the inventory loss for the insurance claim. On July 24, a tornado destroyed Astro Wholesalers' main warehouse and all its contents. Company records indicate that at the time of the tornado, the net sales to date were $535,100 and the purchases were $422,900. The beginning inventory on January 1 was $319,800. For the past three years, the company has maintained a gross margin of 35%. Use the gross profit method to estimate the inventory loss for the insurance claim.

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