Question Five: (10 marks) During December 2019 a flood damaged the South Africa co. stores, the following information is available from books: Beginning inventory 450,000 Fright in 7,000 Sales 1,500,000 Sales discount 45,000 Freight out 14,000 Account receivables 700,000 Purchases 850,000 Purchases returns 15,000 Undamaged inventory 28,000 Sales return 25,000 Gross profit 20% Consigned goods 20,000 The company has insurance police and the insurance company offer $105,000 for the damaged inventory Required: should the company accept the insurance offer, why