The merchandise inventory was destroyed by fire on December 13. The following data were obtained from the accounting records: Jan. 1 Merchandise Inventory $ 355,000 Jan. 1 to Dec. 13 Purchases (net) 2,910,000 Sales 4,440,000 Estimated gross profit rate 40% A. Estimate the cost of the merchandise 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? A. Estimate the cost of the merchandise destroyed. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.