Reconstruction of Records An earthquake caused heavy damage to the Eurasia Antique Store on May 3, 20X8. All merchandise was destroyed. Some accounting data are missing. In conjunction with an insurance investigation, you have been asked to estimate the cost of the inventory destroyed. The following data for 20X8 before the earth- quake are available: Cash discounts on purchases $ 2,000 Gross sales Sales returns and allowances Gross purchases 280,000 24,000 Inventory, December 31, 20X7 Purchase returns and allowances Inward transportation $ 38,000 8,000 4,000 160,000 Gross profit percentage on net sales 45%