During a heavy snowstorm on February 15, 2013, the roof collapsed on Fabulous Freddie's Furniture Showroom.The inventory in the showroom was damaged, as were the inventory records that were stored there.From records kept at the bookkeeper's office they have obtained the following information: $$\begin{array} { l c }
\text { Ending inventory December } 31,2012 : & \$ 75,000 \
\text { Purchases January 1 to February 14: } & \$ 212,500 \
\text { Sales January 1 to February 14: } & \$ 335,800 \
\text { Gross margin in 2012; } & 32 \%
\end{array}$$
Required:
Estimate how much inventory was damaged in the collapse. Explain any factors that might change the amount of the estimate.

Question

During a heavy snowstorm on February 15, 2013, the roof collapsed on Fabulous Freddie's Furniture Showroom.The inventory in the showroom was damaged, as were the inventory records that were stored there.From records kept at the bookkeeper's office they have obtained the following information: $$\begin{array} { l c } 
\text { Ending inventory December } 31,2012 : & \$ 75,000 \
\text { Purchases January 1 to February 14: } & \$ 212,500 \
\text { Sales January 1 to February 14: } & \$ 335,800 \
\text { Gross margin in 2012; } & 32 \%
\end{array}$$ 
Required:
Estimate how much inventory was damaged in the collapse. Explain any factors that might change the amount of the estimate.

Quizplus · Accepted Answer

The Answer of During a heavy snowstorm on February 15, 2013, the roof collapsed on Fabulous Freddie's Furniture Showroom.The inventory in the showroom was damaged, as were the inventory records that were stored there.From records kept at the bookkeeper's office they have obtained the following information: $$\begin{array} { l c } 
\text { Ending inventory December } 31,2012 : & \$ 75,000 \
\text { Purchases January 1 to February 14: } & \$ 212,500 \
\text { Sales January 1 to February 14: } & \$ 335,800 \
\text { Gross margin in 2012; } & 32 \%
\end{array}$$ 
Required:
Estimate how much inventory was damaged in the collapse. Explain any factors that might change the amount of the estimate.

During a Heavy Snowstorm on February 15, 2013, the Roof