Problem - A fired completely destoryed the entire inventory of Printing Delight Co. on March 15,20-. Fortunately, the books were not destoryed in the fire. The following information is taken from the books of Pringting 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%
Estimate the amount of merchandise inventory destoryed in the fire on March 15,20--, using the gross profit method.