Gross Profit Method A flood completely destroyed all the inventory of Bayside Waterworks Company on July 1, 20--. Fortunately, the accounting records were not destroyed in the flood. The following...

Extracted text: Gross Profit Method A flood completely destroyed all the inventory of Bayside Waterworks Company on July 1, 20--. Fortunately, the accounting records were not destroyed in the flood. The following information is provided by Bayside Waterworks for the time period January 1 through July 1, 20--: Beginning inventory, January 1, 20-- $60,000 Net purchases, January 1 through July 1 380,000 Net sales, January 1 through July 1 650,000 Normal gross profit as a percentage of sales 45% Required: Estimate the amount of merchandise inventory destroyed in the flood on July 1 using the gross profit method.