On September 1 of the current year, Scots Company experienced a flood that destroyed the company's entire inventory. Because the company had not completed its month end reporting for August, it must estimate the amount of inventory lost using the gross profit method. At the beginning of August, the company reported beginning inventory of $215,450. Inventory purchased during August was $192,530. Sales for the month of August were $542,500. Assuming the company's typical gross profit ratio is 40%, estimate the amount of inventory destroyed in the flood.

• $190,980

• $87,480

• $134,520

• $82,480

• $81,480

Maxies Game World sold games to a customer on credit for $4,300, terms 1/10, n/30 and the cost of the games was $3,400. When recording the collection from the customer made within the discount period, in its cash receipts journal, Maxies would enter:

• $4,300 in the Cash Dr. column and $4,300 in the Accounts Receivable Cr. column.

• $4,257 in the Cash Dr. column and $4,257 in the Accounts Receivable Cr. column.

• $4,257 in the Cash Dr. column, $43 in the Sales Discount Dr. column and $4,300 in the Accounts Receivable Cr. column.

• $4,300 in the Accounts Receivable Dr./Sales Cr. column and $4,300 in the Cash Cr. column.

• $4,300 in the Cash Dr. column. $3,400 in the Sales Cr. column, and $3,400 in the Cost of Goods Sold Dr./Inventory Cr. column.