Dooling Store’s inventory is destroyed by a fire on September 5, 2011. The following data for year 2011 are available from the accounting records. Estimate the cost of the inventory destroyed.
|
Jan. 1 inventory |
$180,000 |
|
Jan. 1 through Sept. 5 purchases (net) |
$342,000 |
|
Jan. 1 through Sept. 5 sales (net) |
$675,000 |
|
Year 2011 estimated gross profit rate |
42% |