Cost of Inventory Destroyed by Fire Lin Company's insurance agent requires an estimate of the cost of

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Cost of Inventory Destroyed by Fire Lin Company's insurance agent requires an estimate of the cost of merchandise lost by fire on March 9. Merchandise inventory on January 1 was $65,000. Purchases since January I were $195,000; freight in, $15,000; purchase returns and allowances, $10,000. Sales are made at a gross margin of 20% of sales and totaled $200,000 up to March 9. What was the cost of the merchandise destroyed?

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