Selected data on merchandise inventory, purchases, and sales for Jaffe Co. and Coronado Co. are as follows:

Required:

1.

Determine the estimated cost of the merchandise inventory of Jaffe Co. on February 28 by the retail method.*

2.

a.	Estimate the cost of the merchandise inventory of Coronado Co. on October 31 by the gross profit method.*
b.	Assume that Coronado Co. took a physical inventory on October 31 and discovered that $366,500 of merchandise was on hand. What was the estimated loss of inventory due to theft or damage during May through October?
	* Refer to the list of Amount Descriptions provided for the exact wording of the answer choices for text entries.

b. Assume that Coronado Co. took a physical inventory on October 31 and discovered that $366,500 of merchandise was on hand.

What was the estimated loss of inventory due to theft or damage during May through October?

Cost Jaffe Co. Merchandise inventory: February 1 Transactions during February: Purchases (net) Sales $400,000 $615,000 4,055,000 5,325,000 5,100,000 Coronado Co. Merchandise inventory: May 1 Transactions during May through October: Purchases (net) Sales Estimated gross profit rate $400,000 3,150,000 4,750,000 35%