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Teigan's ClothiersInc., a clothing retailer of high-end ladies fashions, had their inventory destroyed in a flood.Its average gross profit percentage is 31%.The following information is
Teigan's ClothiersInc., a clothing retailer of high-end ladies fashions, had their inventory destroyed in a flood.Its average gross profit percentage is 31%.The following information is available:
Beginning inventory$212,350
Purchases$620,850
Purchase returns and allowances$8,000
Sales$985,950
Sales Returns and Allowances$14,760
Required
Calculate the estimated cost of the destroyed ending inventory using the Gross Profit Method.
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