Exercise 9-16 x Your answer is incorrect. Try again. Wallace Company lost most of its inventory in a fire in December just before the year-end physical inventory was taken. The corporation's books disclosed the following. Beginning inventory Purchases for the year Purchase returns $170,000 390,000 30,000 Sales revenue Sales returns Rate of gross profit on net sales $650,000 24,000 40 % Merchandise with a selling price of $21,000 remained undamaged after the fire. Damaged merchandise with an original selling price of $15,000 had a net realizable value of $5,300. Compute the amount of the loss as a result of the fire, assuming that the corporation had no insurance coverage. Amount of the loss 142,400 Click if you would like to Show Work for this question: Open Show Work