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Fosbre Corporation’s April 30 inventory was destroyed by fire. January 1 inventory was $208,900, and purchases for January through April totaled $532,600. Sales revenue for the same period were $713,700. Fosbre’s normal gross profit percentage is 35% on sales.
Using the gross profit method, estimate Fosbre’s April 30 inventory that was destroyed by fire.
Estimated ending inventory destroyed in fire.
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