Question: Exercise 9-10 (Static) Gross profit method [L09-2] A fire destroyed a warehouse of the Goren Group, Inc., on May 4, 2021. Accounting records on that

Exercise 9-10 (Static) Gross profit method [L09-2] A fire destroyed a warehouse of the Goren Group, Inc., on May 4, 2021. Accounting records on that date indicated the following Merchandise Inventory, January 1, 2021 Purchases to date Freight in $1,900,000 5,300,000 400,00 8,200,000 The gross profit ratio has averaged 20% of sales for the past four years, Required: Use the gross profit method to estimate the cost of the inventory destroyed in the fire. Estimated loses from fire

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