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Required information Problem 5-22A (Static) Estimating ending inventory: gross margin method LO 5-4 ...

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Accounting

Required information
Problem 5-22A (Static) Estimating ending inventory: gross margin method LO 5-4
[The following information applies to the questions displayed below.]
The inventory of Don's Grocery was destroyed by a tornado on October 6 of the current year. Fortunately, some of the
accounting records were at the home of one of the owners and were not damaged. The following information was
available for the period of January 1 through October 6.
Beginning inventory, January 1
Purchases through October 6
$140,000
Sales through October 6
670,000
1,100,000
Gross margin for Don's has traditionally been 30 percent of sales.
Problem 5-22A (Static) Part b
b. Assume that $15,000 of the inventory was not damaged. What is the amount of the loss from the tornado?
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