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Teigan's Clothiers Inc., a clothing retailer of high-end ladies fashions, had their inventory destroyed in a flood. Its average gross profit percentage is 31%. The following information is available: Beginning inventory $212,350 Purchases $620,850 Purchase returns and allowances $ 8,000 Sales $985,950 Sales Returns and Allowances $ 14,760 Required
Problem 1: Calculate the estimated cost of the destroyed ending inventory using the Gross Profit Method
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