Estimate the cost of the inventory destroyed

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Question - Kauai store's inventory is destroyed by a fire on September 5, 2013. The following data for the year 2013 are available from the accounting records.

Jan. 1 inventory $190,000

Jan. 1 through Sept. 5 purchases (net) $352,000

Jan. 1 through Sept. 5 sales (net) $685,000

Year 2013 estimated gross profit rate 44%

Estimate the cost of the inventory destroyed.

Reference no: EM132156942

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