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Question - On September 22, 2021, a flood destroyed the entire merchandise inventory on hand in a warehouse owned by the Rocklin Sporting Goods Company. The following information is available from the records of the company's periodic inventory system:
Year
LIFO
Average Cost
2018
$45,100
$54,200
2019
78,300
71,100
2020
83,400
Required - Prepare a journal entry to estimate the cost of inventory destroyed in the flood using the gross profit method.
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