Gross Profit Method Logan's Corporation Recently Suffered a Fire in Its Warehouse. the Its

Essay

Gross profit method
Logan's Corporation recently suffered a fire in its warehouse. The fire destroyed all of the company's inventory on hand at June 30. The opening inventory on June 1 was $1,973,500. Logan purchased an additional $493,000 during June and had sales of $954,000 for the month at a gross profit of 25%.
Instructions
Using the gross profit method, estimate the value of inventory destroyed in the fire.