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Gross Profit Method A fire completely destroyed all the inventory of Glisan...

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Accounting

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 fire. The following information is provided by Glisan Lumber Yard for the time period January 1 through August 5:
Beginning inventory, January 1,20-- $105,000
Net purchases, January 1 through August 5424,000
Net sales, January 1 through August 5734,000
Normal gross profit as a percentage of sales 45%
Required:
Estimate the amount of merchandise inventory destroyed in the fire on August 5 using the gross profit method.
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