On April fire damaged the office and warehouse of Buffalo Corporation. The only accounting record saved was the general
ledger, from which the balance sheet data below was prepared.
The following data and information have been gathered. the fiscal year of the corporation ends on December an examination of the APril Bank statement and canceled checks revealed that checks written during the period April totaled $:$ paid to accounts payable as of March $ for April merchandise shipments, and $ paid for other expenses. Deposits during the same period amounted to $ which consisted of receipts on account from customers with exception of $ refund from a venodor for merchandise returened in April. correspondence with suppliers revealed unrecorded obligations at April of $ for april merchandise shipments, including $ for shipments in transit fob shipping point on that date. Customers acknowledged indebtedness of $ at APril It was also estimated that customers owed another $ that will never be acknowledged or recovered. Of the acknowledged indebtedness, $ wil probably be uncollectible. The companies insuring the inventory agree that the corporation's fireloss claim should be based on the assumption that overall gross profit rate for the past years was in effect during the current year. The corporation's audited financial statements disclosed this information : Year ended Dec Net sales for $ for Net purchases for $ for $ Beginning inventory for for invenotry with a cost of $ was salvaged and sold for $ The balance of the inventory was a total loss. Compute the amount of inventory fire loss?
