Gross Profit Method

A fire completely destroyed all the inventory of Glisan Lumber Yard on August $5,20--.$ Fortunately, the accounting records were not destroyed in the fire. The following information is provided by Glisan Lumber Yard for the time period January $1$ through August $5$:

Beginning inventory, January $1,20--$ $$100,000$

Net purchases, January $1$ through August $5420,000$

Net sales, January $1$ through August $5732,000$

Normal gross profit as a percentage of sales $40\%$

Required:

Estimate the amount of merchandise inventory destroyed in the fire on August $5$ using the gross profit method