(Gross Profit Method) David Hasselholf 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) $ 80,000 Sales $415,000 Purchases 280,000 Sales returns 21,000 Purchase returns 28,000 Gross profit % based on selling price 34% Merchandise with a selling price of $30,000 remained undamaged after the fire, and damaged merchandise has a vage value of $7, 150. The company does not carry fire insurance on its inventory. Instructions Prepare a formal labeled schedule computing the fire loss incurred, using the gross profit method