A substantial portion of inventory owned by Prentiss Sporting Goods was recently destroyed when the roof collapsed during a rainstorm. Prentiss also lost some of its accounting records. Prentiss must...

Extracted text: A substantial portion of inventory owned by Prentiss Sporting Goods was recently destroyed when the roof collapsed during a rainstorm. Prentiss also lost some of its accounting records. Prentiss must estimate the loss from the storm for insurance reporting and financial statement purposes. Prentiss uses the periodic inventory system. The following accounting information was recovered from the damaged records. Beginning inventory Purchases to date of storm $196,000 398,000 600,800 Sales to date of storm The value of undamaged inventory counted was $102,676. Historically, Prentiss' gross margin percentage has been approximately 22 percent of sales. Required Estimate the following: a. Gross margin in dollars. b. Cost of goods sold in dollars. c. Ending inventory. d. Amount of lost inventory. a. Gross margin b. Cost of goods sold c. Estimated ending inventory d. Inventory lost