Gross Profit Method on January 1, Jasper Store Had Inventory

Essay

Gross profit method On January 1, Jasper Store had inventory valued at $124,000.January purchases were $78,000 and January sales were $220,000.On February 1, a fire destroyed most of the inventory.The rate of gross profit was 25% of cost.Merchandise with a selling price of $10,000 remained undamaged after the fire. Inventory 8 - 45 Instructions Calculate the amount of the fire loss.Show appropriate titles for all amounts in your presentation.