help pleasethanks read First Assignment x Y Cengage Off y w

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read: First Assignment x Y Cengage Off × y w CengageNOW C Not secure v2.cengagenow.com/ilrn/takeAssignment takeAssignmentMain doinvoker-assignments take ssignment essionl cat 0 Gross Profit Method A fire completely destroyed all the inventory of Glisan Lumber Yard on August 5, 20-. Fortunately, the accounting records were not destroyed in the following information is provided by Glisan Lumber Yard for the time period January 1 through August 5: Beginning inventory, January 1, 20 Net purchases, January 1 through August 5 410,000 Net sales, January 1 through August 5 Normal gross profit as a percentage of sales 40% Required: Estimate the amount of merchandise inventory destroyed in the fire on August 5 using the gross profit method. $114,000 725,000

Solution

correct answer $89,000

			Amount
a	Beginning Inventory		$        114,000
b	Purchase goods		$        410,000
c	Net sales	$        725,000
d	Gross profit (c*40%)	$        290,000
e	Cost of goods sold (c-d)		$        435,000
f	Closing Inventory (a+b-e)		$          89,000