Eastman Company lost most of its inventory in a fire in December just before the year-end physical inventory was taken. Corporate records disclose the following.
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Inventory (beginning)
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$ 84,300
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Sales revenue
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$415,200
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Purchases
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387,200
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Sales returns
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27,500
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Purchase returns
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30,000
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Gross profit % based on net selling price
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36
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%
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Merchandise with a selling price of $34,800 remained undamaged after the fire, and damaged merchandise has a net realizable value of $8,570. The company does not carry fire insurance on its inventory.
Compute the amount of inventory fire loss. (Do not use the retail inventory method.)
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Inventory fire loss
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$
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