5. Horizon Company had sales of $1,750,000 during the current period and a gross profit rate of 40%. The company's cost of goods available for sale during the period was $1,400,000 The company's ending inventory must have amounted to $ 6. On April 30, Greenfield Sales, Inc. lost its entire inventory in a flood. The following information is available from the company's accounting records, which were recovered from the waterproof safe: Inventory, January 1 $325.000 Purchases, January 1 through April $675.000 30 Net sales. January 1 through April $975.000 30 The gross profit of Greenfield Sales, Inc. over the past several years has consistently averaged 35% of net sales. Using the gross profit method, estimate the cost of the inventory lost in the flood on April 30. 3. The Valley Garden Company had the following transactions: July 1 Purchased merchandise on credit for $3.600 7 Purchased merchandise for cash for $6.300 9 Sold merchandise costing $7.050 for $11.250 on credit (A) Prepare journal entries for Valley Garden assuming the Company uses the gross method when accounting for purchases and a perpetual inventory. (B) Prepare journal entries for Valley Garden assuming the Company uses the gross method and a periodic inventory