A fire destroyed the warehouse of Reed Enterprises,on August 31,2017.The books and records of Reed showed the following information on that date. The gross profit ratio has averaged 40% of sales for the past six years.
Required:
Use the gross profit method to estimate the cost of inventory destroyed by fire.

Question

A fire destroyed the warehouse of Reed Enterprises,on August 31,2017.The books and records of Reed showed the following information on that date.  The gross profit ratio has averaged 40% of sales for the past six years.
Required:
Use the gross profit method to estimate the cost of inventory destroyed by fire.

Quizplus · Accepted Answer

The Answer of A fire destroyed the warehouse of Reed Enterprises,on August 31,2017.The books and records of Reed showed the following information on that date.  The gross profit ratio has averaged 40% of sales for the past six years.
Required:
Use the gross profit method to estimate the cost of inventory destroyed by fire.

A Fire Destroyed the Warehouse of Reed Enterprises,on August 31,2017