Enable Editing 4) The inventory of Runners Company was destroyed by flood on Jun 1. From an examination of the accounting records, the following data for the first five months (Jan to May) of the year are obtained Sales Sales Returns and Allowances Purchases Freight-in Purchase Returns and Allowances $55,000 2000 34,500 1.000 1,400 Required: Determine the merchandise lost by flood using the Gross Profit Method, assuming a beginning inventory of $3,000 and a gross profit rate of 10% on net sales