PROBLEM | 2-10 POINTS Gunther, Inc. wishes to estimate its ending inventory, and the amount...
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PROBLEM | 2-10 POINTS Gunther, Inc. wishes to estimate its ending inventory, and the amount of a fire loss, at December 31, 2020. The following information is available: In addition, Gunther estimates that the average gross profit rate over the last severalyears was 40% of net sales. REQUIRED: A) Estimate Gunther's ending inventory (at cost) as of December 31, 2020, using the gross profit method of inventory estimation. B) Assuming there was a total of $15,000 in inventory left undamaged after a fire occurred, calculate the amount of Gunther's fire loss at December 31, 2020
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