Eastman Company lost most of its inventory in a fire in December just before the year-end physical inventory was taken. Corporate records disclose the following.

Inventory (beginning)		$ 81,300		Sales revenue		$432,700
Purchases		378,500		Sales returns		26,700
Purchase returns		28,600		Gross profit % based on net selling price		34	%

Merchandise with a selling price of $36,900 remained undamaged after the fire, and damaged merchandise has a net realizable value of $8,640. The company does not carry fire insurance on its inventory. Compute the amount of inventory fire loss. (Do not use the retail inventory method.)

Inventory fire loss

$