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  3. 1. in the early morning of aug. 1, 2019, a fire bl

1. In the early morning of Aug. 1, 2019, a fire blazed through the office...

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Accounting

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1. In the early morning of Aug. 1, 2019, a fire blazed through the office and retail space of Trumont Co. The entire inventory and many accounting records were destroyed. Using the remaining records, the following data are assembled along with the additional information below: Gross profit percentage 28% Inventory, January 1 $2,500,000 Purchases, January 1 - July 31 $4,000,000 Accounts Receivable, January 1 $740,000 Accounts Receivable, July 31 $860,000 Allowance for Doubtful Accounts, January 1 $42,000 Allowance for Doubtful Accounts, July 31 $206,000 Additional information: Trumont makes all sales on account. Trumont records estimates of bad debts at the end of each month based on an estimate of 2% of that month's credit sales revenue. At the end of its fiscal year (12/31), Trumont uses aging of accounts receivable to make any additional adjustments. Trumont expects to writeoff bad debts, but had no writeoffs of actual bad debts recorded between Jan.1-July 31 of 2019. Using the gross profit method, estimate the value of the inventory at 8/1/2019. Estimated inventory

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