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Question - On December 31, 2018 Felt Company's inventory burned. Sales and purchases for the year had been $1,500,000 and $980,000, respectively. The beginning inventory (Jan. 1, 2018) was $170,000; in the past Felt's gross profit has averaged 30% of selling price.
How do find the estimated cost of inventory that has been burned?
What are the entries as of December 31, 2018 to close merchandise accounts (to record sales and to record purchases).
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Under dollar-value LIFO method $
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