ESTIMATING ENDING INVENTORY. In October 19x9, Bayside Products lost its entire inventory when the firm’s warehouse was destroyed in an earthquake. The warehouse was covered by insurance, but the inventory was not. Bayside was able to salvage its accounting records and has developed the following information:

Transcribed Image Text:

19x9 sales revenue Inventory, 1/1/x9 19x9 purchases 19x9 purchase returns 19x9 transportation-in $10,850,300 1,073,500 6,297,100 94,200 236,900 Bayside estimates that its 19x9 gross margin rate is 36%. REQUIRED: Compute the amount of the loss.