b. Using the gross prome costimated costentory lost in the fire. E6.18 (LO 6) The inventory of Ipswich Books was destroyed by fire on March 1. From an examination of the accounting records, the following data for the first 2 months of the year are obtained: Sales Revenue 51,000, Sales Returns and Allowances 1,000, Purchases 31,200, Freight-In 1,200, and Purchase Returns and Allowances f1,800. Instructions Determine the merchandise lost by fire, assuming: a. A beginning inventory of 20,000 and a gross profit rate of 40% on net sales. b. ' beginning inventory of 30,000 and a gross profit rate of 32% on net sales