On August 15, 2002, a hurricane damaged a warehouse of Rheinhart Merchandise Company. The entire inventory and many accounting records stored in the warehouse were completely destroyed. Although theinventory was not insured, a portion could be sold for scrap. Through the use of microfilmed records, the following data are assembled:

Compute the inventory loss as a result of the hurricane.

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Inventory, January 1 Purchases, January 1-August 15. Cash sales, January 1-August 15 Collection of accounts receivable, January 1-August 15 Accounts receivable, January 1 Accounts receivable, August 15 Salvage value of inventory. Gross profit percentage on sales $ 375,000 1,385,000 225,000 2,115,000 175,000 265,000 5,000 32%