When the Southside Store was opened for business on the morning of March 15, it was discovered that thieves had broken in and stolen the store's entire inventory. The following information for the period January 1 through March 15 was available to establish the amount of loss:

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Under the assumption the store had earned an average \(32 \%\) gross profit on sales during the past five years, prepare a statement showing the estimated loss.
Problem 8-9 Gross profit method (L.O. 5)

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January 1 merchandise inventory at cost $117,000 Purchases 332,300 Purchases returns Transportation-in Sales Sales returns. 1,495 2,015 500,500 4,950