Question

The inventory of Hauser Company was destroyed by fire on March 1. From an examination of the accounting records, the following data for the first 2 months of the year are obtained: Sales Revenue $51, 200, Sales Returns and Allowances $1, 200, Purchases $40,560, Freight-In $1,300, and Purchase Returns and Allowances $ 1,590. Determine the merchandise lost by fire, assuming: A beginning inventory of $21,630 and a gross profit rate of 40% on net sales. The merchandise lost by fire $___________A beginning inventory of $36,900 and a gross profit rate of 34% on net sales. The merchandise lost by fire $____________