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Business, 13.10.2021 23:10 itscheesycheedar

The inventory of Peters Company was destroyed by fire on March 1. Froman examination of theaccounting records, the following data for the first 2 months ofthe year are obtained: Sales Revenue$105,000, Sales Returns and Allowances$5,000, Purchases $62,000, Freight-In $2,000, andPurchase Returns andAllowances $1,000.Instructions Determine the merchandise lost by fire, assuming: (a)A beginning inventory of $30,000 and a gross profit rate of 40% on net sales.(b)A beginning inventory of $35,000 and a gross profit rate of 30% on net sales.

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