On April 15, 2011, fire damaged the office and warehouse of Stanislaw Corporation. The only accounting record saved was the general ledger, from which the trial balance was prepared. Stanislaw Corporation Trial Balance March 31, 2011 Cash $20,000 Accounts receivables $40,000 Inventory, December 31, 2010 $75,000 Land $35,000 Building and Equipment $110,000 Accumulated Depreciation $41,300 Other assets $3,600 Accounts payables $23,700 Other expense accruals $10,200 Capital stock $100,000 Retained earnings $52,000 Sales $135,000 Purchases $52,000 Other expenses $26,600 $362,200 $362,200 The following data and information have been gathered 1. The fiscal year of the corporation ends on December 31. 2. An examination of the April bank statement and canceled checks revealed that checks written during the period of April 1-15 totaled $13,000: $5700 paid to accounts payable as of March 31, $3400 for April merchandise shipments, and $3900 paid for other expenses. Deposits during the same period amounted of $12,950, which consisted of receipts on account from customers with the exception of a $950 refund from a vendor for merchandise returned in April. 3. Correspondence with suppliers revealed unrecorded obligations at April 15 of $15,600 for April merchandise shipments, including $2300 for shipments in transit (f.o.b. shipping point) on that date. 4. Customers acknowledged indebtedness of $46,000 at April 15, 2011. It was also estimated that customers owe another $8000 that will never be acknowledged or recovered. Of the acknowledged indebtedness, $600 will probably by uncollectible. 5. The companies insuring the inventory agreed that the corporations' fire-loss claim should be based on the assumption that the overall gross profit ratio for the past 2 years was in effect during the current year. The corporations' audited financial statements disclosed this information: Year Ended December 31 2010 2009 Net sales $530,000 $390,000 Net purchases $280,000 $235,000 Beginning Inventory $50,000 $66,000 Ending Inventory $75,000 $50,000 6. Inventory with a cost of $7000 was salvaged and sold for $3500. The balance of the inventory was a total loss. Instructions Prepare a schedule computing the amount of inventory fire loss. The supporting schedule of the computation fo the gross profit should be in good form. (AICPA adapted)