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lint Company lost most of its inventory in a fire in December just before the...

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Accounting

lint Company lost most of its inventory in a fire in December just before the year-end physical inventory was taken. The corporations books disclosed the following.

Beginning inventory $161,400 Sales revenue $632,700
Purchases for the year 398,600 Sales returns 26,400
Purchase returns 33,000 Rate of gross profit on net sales 40 %

Merchandise with a selling price of $22,200 remained undamaged after the fire. Damaged merchandise with an original selling price of $14,700 had a net realizable value of $5,400. Compute the amount of the loss as a result of the fire, assuming that the corporation had no insurance coverage.

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