Woods warehouse burned down on April of Year The following information up to the date of the re was taken from the Year records of the company: inventory, January $ ; gross sales, $ ; purchases, $ ; sales returns restored to inventory $ ; purchase returns and allowances, $ ; and freightin $ The cost of goods sold and gross prot for the past three years follow.
Year Cost of Goods Sold Gross Profit
Year $ $
Year
Year
Required
a Estimate the cost of the inventory destroyed in the re using the average gross prot percentage for the past three years.
Note: Assume no inventory was salvagable.
Note: Do not use negative signs with any of your answers.
Average gross profit percentage for the past three years COGAS Answer
COGS,
Ending inventory loss Our estimate in part a would be questionable in all of the following cases except for:
