A Fire Destroyed the Inventory of Barber Company Required:
1

Essay

A fire destroyed the inventory of Barber Company. The following information is available:
$$\begin{array} { | l | r | } \hline \text { Beginning inventory } & \$ 50,000 \\\hline \text { Purchases } & \$ 170,000 \\\hline \text { Net Sales Revenue } & \$ 200,000 \\\hline \text { Gross Profit Percentage } & 30 \% \\\hline\end{array}$$
Required:
1. Prepare a schedule to compute the amount of inventory lost in the fire using the gross profit method.
2. Prepare the required journal entry after the fire.