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--
Net purchases, January 1, through March 15, 20--
Net sales, January 1, through March 15, 20--
Normal gross profit percentage of sales
$45,000
252,000
378,000
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
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--