Gross Profit Method

ACC 301 - Gross Profit Method Raynor Company lost most of its inventory in a fire just before the company was to take it's year-end physical inventory. The company's records disclosed the following. Merchandise with a selling price of $80,000 was not damaged by the fire. The damaged merchandise has a net realizable value of $8,150. Required: Prepare a schedule computing the fire loss (Do not use the retail inventory method)