P6.10 Compute gross profit rate and inventory loss using gross profit method
Bao Company lost all of its inventory in a fire on December 26, 2022. The accounting records showed the following inventory-related data for November and December.
			December (to 12/26)
		November
	Net sales	$600,000	$700,000
	Beginning inventory	32,000	36,000
	Purchases	389,000	420,000
	Purchase returns and allowances	13,300	14,900
	Purchase discounts	8,500	9,500
	Freight-in	8,800	9,900
	Ending inventory	36,000	?
Bao is fully insured for fire losses but must prepare a report for the insurance company.
Instructions
a.	Compute the gross profit rate for November.
b.	Using the gross profit rate for November; determine the estimated cost of the inventory lost in the fire.
NOTE: Enter a formula, a cell reference, or a value (if you are unable to reference a cell), into the yellow shaded input cells.