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The inventory of Waterway Company was destroyed by fire on March 1. From an examination...

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Accounting

The inventory of Waterway Company was destroyed by fire on March 1. From an examination of the accounting records, the following data for the first 2 months of the year are obtained: Sales Revenue $51,000, Sales Returns and Allowances $1,000, Purchases $35,000, Freight-In $1,400, and Purchase Returns and Allowances $1,600.
Determine the merchandise lost by fire, assuming:
(a)
Your answer is correct.
A beginning inventory of $21,000 and a gross profit rate of 34% on net sales.
Estimated cost of merchandise lost
$
eTextbook and Media
(b)
A beginning inventory of $30,000 and a gross profit rate of 44% on net sales.
Estimated cost of merchandise lost
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