On April 15, 2021, fire damaged the office and warehouse of Metlock Corporation. The only accounting record saved was the general ledger, from which the balance sheet data below was prepared.

METLOCK CORPORATION

MARCH 31, 2021

Cash $19,400

Accounts receivable 36,420

Inventory, December 31, 2020 78,600

Land 38,130

Buildings 100,320

Accumulated depreciation $40,103

Equipment 3,467

Accounts payable 24,969

Other accrued expenses 5,871

Common stock 105,900

Retained earnings 52,420

Sales revenue 128,050

Purchases 52,420

Miscellaneous expense 28,556

$357,313 $357,313

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 April 1-15 totaled $12,460: $6,186 paid to accounts payable as of March 31, $3,394 for April merchandise shipments, and $4,129 paid for other expenses. Deposits during the same period amounted to $12,742, which consisted of receipts on account from customers with the exception of a $997 refund from a vendor for merchandise returned in April.

3. Correspondence with suppliers revealed unrecorded obligations at April 15 of $14,396 for April merchandise shipments, including $2,194 for shipments in transit (f.o.b. destination) on that date.

4. Customers acknowledged indebtedness of $42,020 at April 15, 2021. It was also estimated that customers owed another $8,280 that will never be acknowledged or recovered. Of the acknowledged indebtedness, $642 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. The corporation's audited financial statements disclosed this information:

Year Ended

December 31

2020 2019

Net sales $568,220 $368,920

Net purchases 298,400 215,960

Beginning inventory 54,300 62,480

Ending inventory 78,600 54,300

6. Inventory with a cost of $6,700 was salvaged and sold for $3,710. The balance of the inventory was a total loss.

Compute the amount of inventory fire loss. (Round ratios for computational purposes to 2 decimal places, e.g 78.52% and final answer to 0 decimal places, e.g. 28,987.)

Inventory fire loss

$