QS $5-26$B $($Static$)$ Estimating inventories$-$gross profit method LO P$4$

Confucius Bookstore's inventory is destroyed by a fire on September $5.$ The following data for the current year are available from the

accounting records.

Beginning inventory, January $1$

January $1$ through September $5$ purchases $($net$)$

January $1$ through September $5$ sales $($net$)$

Current year's estimated gross profit rate

Estimate the cost of the inventory destroyed.

$$190,000$

$$352,000$

$$685,000$

$44\%$