A fire completely destroyed the entire inventory of Printing Delight Co. on March 15, 20--. Fortunately, the books were not destroyed in the fire. The following information is taken from the books of Printing Delight Co. for the time period, January 1, 20-- through March 15, 20--:

Beginning inventory, January 1, 20-- $45,000

Net purchases, January 1, through March 15, 20-- 252,000

Net sales, January 1, through March 15, 20-- 378,000

Normal gross profit percentage of sales 37%

Required:

1.Estimate the cost of goods sold for the time period January 1 through March 15, 20--, using the gross profit method.

Estimated cost of goods sold $

2.Estimate the amount of merchandise inventory destroyed in the fire on March 15, 20--, using the gross profit method.

Estimated inventory on March 15, 20-- $

A truck was purchased on January 2 at a cost of $60,000. It is expected to be used for 5 years and to have a salvage value of $5,000 after 120,000 miles of service. The truck was driven 23,000 miles the first year and 25,000 miles the second year. Calculate the depreciation expense for the 1st and 2nd years. Round your answers to two decimal places.

Year 1 Year 2 Straight-line $ $ Declining-balance (double) $ $ Sum-of-the-years-digits' $ $ Units-of-production $ $