Gross Profit Method On January 1, Jasper Store Had Inventory Valued at $124,000

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.
Instructions
Calculate the amount of the fire loss. Show appropriate titles for all amounts in your presentation.