On July 31st, 2019, a fire destroyed a retail location of Bettys Beauty Boutique. All...
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Accounting
On July 31st, 2019, a fire destroyed a retail location of Bettys Beauty Boutique. All of the inventory on hand was destroyed. The inventory on hand as of June 30, 2019 had totaled $1,300,000. Since then, the company made purchases of $450,000 (cost) and had sales of $840,000 (retail value). Estimate the approximate value of the inventory that was destroyed using the Gross Profit Method. Assume the rate of gross profit to selling price is 35%.
What is the estimated value of inventory destroyed on July 31, 2019 $__________________
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