Question III (8 marks) A Company wants to estimate inventory destroyed by flood. Its average gross profit percentage is 37%. The following information is available: Inventory, beginning $112,350 Purchases 520,850 Purchases returns and allowances 5,000 Transportation-in 4,725 Sales 885,950 Sales returns and allowances 9,760 Required Calculate the value of the destroyed ending inventory using the gross profit method. Round numbers to the nearest dollar, if necessary. Question IV {18 marks) Star back's bank statement for the month of November 2020 showed a balance per bank of $7,000. The company's general ledger cash account showed a balance of $5,659 at November 30. Other information is as follows: Cash receipts for November 30 recorded on the company's books were $5,200, but this amount does not appear on the bank statement The bank statement shows a debit memorandum for $40 for cheque printing charges Cheque #119 payable in the amount of $248 to Steer Corporation was recorded in the general journal and cleared the bank for $248. A review of the accounts payable records shows a $36 credit balance in Steer's account and that the total payment should have been for $284 The total amount of cheques outstanding at November 30 was $5,800 Cheque #138 was correctly written and paid by the bank for $409. The cash payment journal reflects an entry for Cheque #138 as a debit to accounts payable and a credit to cash for $490 The bank returned an NSF cheque from a customer for $560 The bank statement included a deposit for $1,260, which represents the electronic collection of customer accounts which have not yet been recorded on the company's books Required a) Prepare a bank reconciliation for Star back's at November 30, 2020. b) Prepare any adjusting entries necessary as a result of the bank reconciliation