savita ACC 301 Gross Profit MethodRaynor Company lost most of its inventory in a fire just before the company was to takeit's year-end physical inventory. The company's records disclosed the following.Beginning inventoryPurchasesPurchase returns80,000290,000Sales revenueSales returns28,000Gross profit based on selling price = 35%415,00021,000Merchandise with a selling price of $80,000 was not damaged by the fire. Thedamaged merchandise has a net realizable value of $8,150.Required:Prepare a schedule computing the fire loss (Do not use the retail inventory method)

Cost of goods sold means actual cost of goods that are being sold to customers. Gross profit is…

ACC 301-Gross Profit Method Raynor Company lost most of its inventory in a fire just before the company was to take it's year-end physical inventory. The company's records disclosed the following. Beginning inventory Purchases Purchase returns 80,000 290,000 28,000 Gross profit based on selling price = 35% Sales revenue Sales returns 415,000 21,000 Merchandise with a selling price of $80,000 was not damaged by the fire. The damaged merchandise has a net realizable value of $8,150. Required: Prepare a schedule computing the fire loss (Do not use the retail inventory method)