The Navarre Company had a fire on February 10,2011, that destroyed a major portion of its inventory. The salvaged accounting records contained the following information:
Sales January 1 to Feb 10 $701,200
Net merchandise purchased Jan. 1 to Feb. 10 364,800
Income statment:
Sales $6,400,450
Cost of goods sold $5,521,150
Balance sheet :
Merchandise invetory $588,200
Navarre was able to salvage inventory with a cost of $212,400
Estimating Ending Inventory
Gross Profit method