The inventory was destroyed by fire on December 31. The following data were obtained from the accounting records: $ 350,000 Jan. 1 Inventory Purchases (net) Jan. 1 to Dec. 31 2,86 Sales 4,440,000 Estimated gross profit rate 30% A. Estimate the cost of the inventory destroyed. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. B. In which situations would the gross profit method be useful? Score: 39/61 Estimated Cost of Merchandise Destroyed Cost 1 Inventory, January 1 $350,000.00 2,860,000.00 Purchases (net), January 1-December 31 $3,210,000.00 Merchandise available for sale 4 Ratio of cost to retail price Estimated gross profit A Estimated cost of goods sold 7 8 Estimated inventory, December 31