Grouper Corp. lost most of its inventory in a fire in December, just before the year-end physical inventory was taken. The corporations books disclosed the following:

Beginning inventory		$	370,000		Sales		$	1,391,800
Purchases for the year			960,000		Sales returns			50,000
Purchase returns			82,000		Gross margin on sales			47	%

Merchandise with a selling price of $40,000 remained undamaged after the fire. Damaged merchandise with an original selling price of $26,000 had a net realizable value of $9,600.

Calculate the amount lost because of the fire, assuming that the corporation had no insurance coverage.

Loss of inventory due to fire $

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Prepare the journal entry to record the loss and account for the damaged inventory in a separate Damaged Inventory account. In the same entry, record cost of goods sold for the year ended December 31.