A)

B)

Blossom Company lost most of its inven in a fire in December just before the year-end physical inventory was taken. The corporation's books disclosed the following Beginning inventory $177,000 Sales revenue $646,500 Purchases for the year 358,900 Sales returns 25,200 Purchase returns 29,300 Rate of gross profit on net sales 30 Merchandise with a selling price of $21,700 remained undamaged after the fire. Damaged merchandise with an original selling price of $14,500 had a net realizable value of $5,400 Compute the amount of the loss as a result of the fire, assuming that the corporation had no insurance coverage. Amount of the loss s