Prior to a Fire That Destroyed Most of Its Inventory,Verona

Essay

Prior to a fire that destroyed most of its inventory,Verona Company had inventory purchases during the period of $80,000 and sales of $250,000.Verona began the period with $190,000 in inventory.Verona's typical gross profit percentage is 20 percent.Inventory that cost $10,000 survived the fire.Using the gross profit method,estimate the inventory loss from the fire.(Show your work.)