Gross Profit Method On January 1 A Store Had Inventory Of 48000 January Purchase

gross profit method: On January 1, a store had inventory of $48000. January purchases were $46000 and January sales were $90000. 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 $5000 remained undamaged after the fire. Compute the amount of the fire loss, assuming the store had no insurance coverage. Label all figures.

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