Confucius Bookstore’s inventory is destroyed by a fire on September 5, 2015. The following data for year 2015 are available from the accounting records. Estimate the cost of the inventory destroyed.
Jan. 1 inventory . . . . . . . . . . . . . . . . . . . . . . . . . . $190,000
Jan. 1 through Sept. 5 purchases (net) . . . . . . . . . $352,000
Jan. 1 through Sept. 5 sales (net) . . . . . . . . . . . . $685,000
Year 2015 estimated gross profit rate . . . . . . . . . 44%