(Answered) Rasheed wallace company lost most of its inventory in a

Accounting

Rasheed Wallace Company lost most of its inventory in a fire in December just before the year-end physical inventory was taken. The corporation's books disclosed the following.

Beginning inventory $174,000 Sales revenue $677,500
Purchases for the year 460,300 Sales returns 27,320
Purchase returns 30,400 Rate of gross profit on net sales 30%

Merchandise with a selling price of $21,000 remained undamaged after the fire. Damaged merchandise with an original selling price of $13,970 had a net realizable value of $6,300.

Compute the amount of the loss as a result of the fire, assuming that the corporation had no insurance coverage.

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