On September 30, year 2, fire at Brock Companys only warehouse caused severe damage to...
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Accounting
On September 30, year 2, fire at Brock Companys only warehouse caused severe damage to its entire inventory. Based on recent history, Brock has a gross profit of 30% of net sales. The following information is available from Brocks records for the 9 months ended September 30, year 2:
| Inventory at 1/1/Y2 | $ 550,000 |
| Purchases | 3,000,000 |
| Net sales | 4,000,000 |
A physical inventory disclosed usable damaged goods which Brock estimates can be sold to a jobber for $50,000. Using the gross profit method, the estimated cost of goods sold for the 9 months ended September 30, year 2, should be
Group of answer choices
$2,050,000
$2,485,000
$2,750,000
$2,800,000
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