On December 20, 2021 Kevin Company's inventory was lost in a fire. The following Information...
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Accounting
On December 20, 2021 Kevin Company's inventory was lost in a fire. The following Information is available for the period July 1 to December 20: Inventory, July 1 $ 90,000 Inventory purchases 456,000 Purchase discounts 1.250 Transportation-in 6,600 Net sales 740,000 In the last 12 months, the company's gross profit on sales has averaged 38%. REQUIRED: Use the gross profit method to estimate Kevin Company's inventory loss as at December 20, 2021. (Show and label your calculations.)
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