Question: When a physical inventory count is not possible or costeffective, an estimate of inventory may be made. When might thegross profit method of estimating inventory

When a physical inventory count is not possible or costeffective, an estimate of inventory may be made. When might thegross profit method of estimating inventory be used?

When inventory can be salvaged for sale after a hurricane.

When inventory is destroyed by fire or other catastrophe.

When the proceeds from insurance coverage of inventory have beenreceived.

When inventory has a consistent mark-up.

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