(SOLVED) R B Company began June with inventory of 45 800 The


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$19

R B Company began June with inventory of $45,800. The business made net purchases of $31,900 and had net sales of $64,500 before a fire destroyed the company’s inventory. For the past several years, R Bs gross profit percentage has been 45%. Estimate the cost of the inventory destroyed by the fire. Identify another reason owner’s and managers use the gross profit method to estimate inventory.

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$19