(Learning Objective 4: Estimating inventory by the gross profi t method) J R Company began May with inventory of $47,500. The business made net purchases of $30,900 and had net sales of $62,100 before a fi re destroyed the company’s inventory. For the past several years, J R’s gross profi t percentage has been 35%. Estimate the cost of the inventory destroyed by the fi re. Identify another reason owners and managers use the gross profi t method to estimate inventory.