Nash 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 Amount of the loss $164,700 415,300 $ 27,700 Sales revenue Sales returns Rate of gross profit on net sales $677,100 23,500 Merchandise with a selling price of $19,100 remained undamaged after the fire. Damaged merchandise with an original selling price of $13,800 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. 30 %

Nash 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. Merchandise with a selling price of $19.100 remained undamaged after the fire. Damaged merchandise with an original selling price of $13,800 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 $