9-7 Tried to do this question on wiley and couldn\'t get the right answer any he

Question

9-7 Tried to do this question on wiley and couldn't get the right answer any help and explanation will be greatly appreciated.

Brief Exercise 9-7 Your answer is incorrect. Try again Fosbre Corporation's April 30 inventory was destroyed by fire. January 1 inventory was $172,600, and purchases for January through April totaled $475,000. Sales revenue for the same period were $714,100. Fosbre's normal gross profit percentage is 30% on sales. Using the gross profit method, estimate Fosbre's April 30 inventory that was destroyed by fire Estimated ending inventory destroyed in fire 499870 LINK TO TEXT

Explanation / Answer

Cost of Goods Sold = 714100 x (1 - 0.3) = $499,870

Estimated ending inventory destroyed in fire = 172600 + 475000 - 499870 = $147,730

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