Gross Profit Method The inventory was destroyed by fire on December 31. The following data were obtained from the accounting records: Jan. 1 Inventory $350,000 Jan. 1 - Dec. 31 Purchases (net) 2,950,000   Sales 4,440,000   Estimated gross profit rate 35%   a. Estimate the cost of the inventory destroyed.   Estimated Cost of Merchandise Destroyed       $           $   $                   $ b. Which method is used to estimate inventory cost in case of inventory destroyed by fire?

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A:

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A:

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Q: estimated cost of merchandise inventory destroyed by fire

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