Corporate records disclose

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Reference no: EM13920988

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.

Inventory (beginning)	$ 84,300	Sales revenue	$415,200
Purchases	387,200	Sales returns	27,500
Purchase returns	30,000	Gross profit % based on net selling price	36	%

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.)

Inventory fire loss

Reference no: EM13920988

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