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Exercise 9-8(Algo) Gross profit method [LO9-2] On September 22,2024, a flood destroyed the...

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Accounting

Exercise 9-8(Algo) Gross profit method [LO9-2]
On September 22,2024, a flood destroyed the entire merchandise inventory on hand in a warehouse owned by the Rocklin Sporting Goods Company. The following information is available from the records of the company's periodic inventory system:
Inventory, January 1,2024
Net purchases, January 1 through September 22
Net sales, January 1 through September 22
Gross profit ratio
$156,000
386,000
630,000
20%
Required:
Complete the below table to estimate the cost of inventory destroyed in the flood using the gross profit method.
\table[[Beginning inventory,,$,156,000],[Plus Net purchases,,,386,000],[Cost of goods available for sale,,,542,000],[Less: Cost of goods sold:],[Net sales,630,000,,],[Less: Estimated gross profit],[Estimated cost of goods sold,,,630,000],[Estimated cost of inventory destroyed,,$,(88,000)
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