- The Bad Luck Company had a fire on July 5, 2020. The Bad Luck Company uses the periodic method of accounting for its inventory valuation so its inventory balance in its general ledger balance had not been updated during the year. The accounting records contained the following information for the period from January 1 - July 5 (the year end is December 31): January 1 - July 5, 2020 Sales $1,475,300 Sales returns 10,000 Sales discounts 15,300 Merchandise purchased 829,800 Purchase returns 29,800 Additional information was discovered from the review of the December 31, 2019 financial statements. Net sales for 2019 $4, 245, 100 Cost of goods sold 2,547,060 Inventory at 12/31/2019 270,000 Assume that the gross profit percentage for 2019 is a close approximation of the gross profit percentage of 2020, REQUIRED (14 marks) REQUIRED (14 marks) Bad Luck Company was able to salvage inventory of $60,000 after the fire was put out. Determine the amount of inventory lost by the Bad Luck Company as a result of the fire. 1 B