The merchandise inventory of Planter Co was destroyed by flood on August 15. The following data were obtained from the accounting records: Jan 1 Inventory $650,000 Jan 1 - August 15 Purchases (net) 1,100,000 Sales (net) 2,600,000 Gross Profit Rate 40% Instructions:
Estimate the cost of the inventory destroyed in the flood. Show all work.
Sales Cost of Good Sold Gross Profit
Inventory Beg Inventory COGS: Purchases: Ending: