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Swifty Corp. 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 $360,000
Sales $1,213,900
Purchases for the year 800,000
Sales returns 52,000
Purchase returns 69,000
Gross margin on sales 40%
Problem 1: Calculate the amount lost because of the fire, assuming that the corporation had no insurance coverage.
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