E9-17 (LO4) (Gross Profit Method) You are called by Tim Duncan of Spurs Co. on July 16 and asked to prepare a claim for insurance as a result of a theft that took place the night before. You suggest that an inventory be taken immediately. The follow ing data are available. S 38,000 85,000 Inventory, July Purchases-goods placed in stock July 1-15 Sales revenue goods delivered to customers (gross 116,000 Sales returns -goods returned to stock 4,000 Your client reports that the goods on hand on July 16 cost $30,500, but you determine that this figure includes goods of $6,000 received on a consignment basis. Your past records show that sales are made at approximately 40% over cost. Duncan's insur- ance covers only goods owned Instructions Compute the claim against the insurance company