A fire completely destroyed the entire inventory of Printing Delight Co. on March 15, 20--. Fortunately, the books were not destroyed in the fire. The following information is taken from the books of Printing Delight Co. for the time period, January 1, 20-- through March 15, 20--: Beginning inventory, January 1, 20-- $45,000 Net purchases, January 1, through March 15, 20-- 252,000 Net sales, January 1, through March 15, 20-- 378,000 Normal gross profit percentage of sales 37% Required: 1. Estimate the cost of goods sold for the time period January 1 through March 15, 20--, using the gross profit method. Estimated cost of goods sold $fill in the blank 56bde601bf83fc2_1 238,140 2. Estimate the amount of merchandise inventory destroyed in the fire on March 15, 20--, using the gross profit method.
A fire completely destroyed the entire inventory of Printing Delight Co. on March 15, 20--. Fortunately, the books were not destroyed in the fire. The following information is taken from the books of Printing Delight Co. for the time period, January 1, 20-- through March 15, 20--:
Beginning inventory, January 1, 20-- $45,000
Net purchases, January 1, through March 15, 20-- 252,000
Net sales, January 1, through March 15, 20-- 378,000
Normal gross profit percentage of sales 37%
Required:
1. Estimate the cost of goods sold for the time period January 1 through March 15, 20--, using the gross profit method.
Estimated cost of goods sold $fill in the blank 56bde601bf83fc2_1
238,140
2. Estimate the amount of merchandise inventory destroyed in the fire on March 15, 20--, using the gross profit method.
Estimated inventory on March 15, 20-- $fill in the blank 044dfbfd0049fde_1
58,860
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