A flood destroyed a company's warehouse contents on September 12. The following information was the only information that was salvaged: 1. Inventory, beginning: $29,700 2. Purchases for the period: $18,700 3. Sales for the period: $56,700 4. Sales returns for the period: $870 The company's average gross profit ratio is 23%. What is the estimated cost of the lost inventory using the gross profit method