Thompson Company, a camera store, lost some inventory in a fire on August $15.$ To file an insurance claim, the company must estimate its August $15$ inventory using the gross profit method. For

the past two years, Thompson Company's gross profit has averaged $43\%$ of net sales. Its inventory records reveal the following data:

$($Click the icon to view the data.$)$

Read the requirements.

Requirement $1.$ Estimate the cost of the lost inventory using the gross profit method.

Add:

Less:

Net purchases

Estimated cost of goods sold:

Less:

Estimated cost of goods sold

Estimated cost of ending inventory lost

Data table

Inventory, August $1$

$$57,400$

Transactions August $1-15$:

Purchases

$490,200$

Purchases discounts

$15,000$

Purchase returns

$70,200$

Sales

$666,000$

Requirements

Estimate the cost of the lost inventory using the gross profit method.

Prepare the income statement for August $1$ to August $15$ for this product

through gross profit. Show the detailed computations of cost of goods sold in a

separate schedule.