Wood's warehouse burned down on April 1 of Year 4. The following information (up to the date of the fire) was taken from the Year 4 records of the company: inventory, January 1, $45,000; gross sales, $240,000; purchases, $135,000; sales returns (restored to inventory), $7,500; purchase returns and allowances, $3,000; and freight-in, $12,000. The cost of goods sold and gross profit for the past three years follow. Year Cost of Goods Sold Gross Profit Year 1 $750,000 $187,500 Year 2 690,000 180,000 180,000 Year 3 750,000 Required a. Estimate the cost of the inventory destroyed in the fire, using the average gross profit percentage for the past three years. Note: Assume no inventory was salvagable. Note: Do not use negative signs with any of your answers. Average gross profit percentage for the past three years: COGAS $ COGS, estimated $ Ending inventory loss $ %