Question: The inventory was destroyed by fire on October 11. The following data were obtained from the accounting records: a. Estimate the cost of the merchandise

The inventory was destroyed by fire on October 11. The following data were obtained from the accounting records:

The inventory was destroyed by fire on October 11. The

a. Estimate the cost of the merchandise destroyed.
b. Briefly describe the situations in which the gross profit method is useful.

Jan. 1 Jan. 1-Oct. 11 Purchases (net Inventory 260,000 1,900,000 3, 200,0D0 Sales (net) Estimated gross profit rate 40%

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