On April 15, 2013, fire damaged the office and warehouse of Stanislaw Corporation. The only accounting record saved was the general ledger, from the following trial balance.

Problem 9-5 On April 15, 2013, fire damaged the office and warehouse of Stanislaw Corporation. The only accounting record saved was the general ledger, from the following trial balance. STANISLAW CORPORATION TRIAL BALANCE 31-Mar-13 $23,300 50,100 82,800 44,800 120,200 Cash Accounts receivable Inventory, December 31, 2012 Land Buildings Accumulated depreciation Equipment Accounts payable Other accrued expenses Common stock Retained earnings Sales revenue Purchases Miscellaneous expense $48,000 3,740 33,400 20,810 110,030 61,500 142,900 61,500 30,200 $416,640 $416,640 The following data and information have been gathered. 1 2 3 The fiscal year of the corporation ends on December 31. An examination of the April bank statement and canceled checks revealed that checks written during the period April 1-15 totaled $21,700: $5,870 paid to accounts payable as of March 31, $3,130 for April merchandise shipments, and $12,700 paid for other expenses. Deposits during the same period amounted to $13,600, which consisted of receipts on account from customers with the exception of a $820 refund from a vendor for merchandise returned in April. Correspondence with suppliers revealed unrecorded obligations at April 15 of $19,200 for April merchandise shipments, including $2,610 for shipments in transit (f.o.b. shipping point) on that date. 4 Customers acknowledged indebtedness of $50,800 at April 15, 2013. It was also estimated that customers owed another $8,170 that will never be acknowledged or recovered. Of the acknowledged indebtedness, $770 will probably be uncollectible. 5 The companies insuring the inventory agreed that the corporation's fire-loss claim should be based on the assumption that the overall gross profit rate for the past 2 years was in effect during the current year. 6 Inventory with a cost of $7,150 was salvaged and sold for $3,590. The balance of the inventory was a total loss. The corporation's audited financial statements disclosed this information: Year Ended 31-Dec 2012 Net sales Net purchases Beginning inventory Ending inventory $538,300 285,200 58,700 82,800 2011 $385,300 239,300 71,000 58,700 Compute the amount of inventory fire loss. (Round ratios for computational purposes to 1 decimal places, e.g 78.5% and final answers to 0 decimal places, e.g. $28,987.) Inventory fire loss $