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Q6. In March of 2005, ChemCo's inventory was destroyed by fire. ChemCo's normal gross profit ratio is 30% of net sales. At the time of
Q6. In March of 2005, ChemCo's inventory was destroyed by fire. ChemCo's normal gross profit ratio is 30% of net sales. At the time of the fire, ChemCo showed the following balances. Calculate the estimated loss in inventory using the gross profit method. Sales $ 31,500 Sales returns 1,500 Beginning Inventory 12,000 Net cost of goods purchased 20,500
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