A fire completely destroyed the entire inventory of Printing Delight Company on April 10, 2014. Fortunately, the books were not destroyed in the fire. The following information is taken from the books of Printing Delight Company for January 1 to April 10 of 2014.
Estimate the amount of merchandise destroyed in the fire using the gross profit method:
To determine the amount of merchandise destroyed we will use the following formula:
Beginning inventory + Net ...
The solution depends on the method used to determine the selling price of the goods.