1. The inventory of Susan company was destroyed by fire on march1. From an examination of the accounting records, the following data for the first 2month of the year are obtained sales Br 51,000; sales return and allowance Br 1,400.

Required:

Determine the merchandise lost by fire, using gross profit method, assuming that: (a) a begging inventory of Br 20,000 and gross profit rate of 30% on net sales. (b) A begging inventory of Br 25,000 and gross profit off 25% on net salev