E$6\mathrm{.}18$ modified

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 two 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 $$1,800.$

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$.$ A beginning inventory of $$30,000$ and gross profit rate of $25\%$ on cost