Exercise 6-20 The inventory of Novak Corp, was destroyed by fire on March 1. From an examination of the accounting records, the following data for the first 2 months of the are obtained: Sales Revenue $54,500, Sales Returns and Allowances 51,100, Purchases $35,500. Freight in $1,300, and Purchase Returns and Allowance 1.200 Determine the merchandise lost by fire, assuming x your answer is incorrect. Try again. A beginning inventory of $25,000 and gross profit rate of 40 on net sales Estimated cost of merchandise lost Your answer is incorrect. Try again A beginning inventory of $35,000 and gross profit rate of one mated cost of merchandise lost 1 2,600