On April 15, 2021, fire damaged the office and warehouse of Flint Corporation. The only accounting record saved was the general ledger, from which the balance sheet data below was prepared. FLINT CORPORATION MARCH 31, 2021 Cash $21,660 Accounts receivable 42,720 Inventory, December 31, 2020 68,450 Land 34,230 Buildings 99,060 Accumulated depreciation $38,347 Equipment 3,539 Accounts payable 21,530 Other accrued expenses 2,944 Common stock 102,200 Retained earnings 48,650 Sales revenue 130,490 Purchases 48,650 Miscellaneous expense 25,852 $344,161 $344,161 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 115 totaled $13,800: $5,348 paid to accounts payable as of March 31, $3,261 for April merchandise shipments, and $3,863 paid for other expenses. Deposits during the same period amounted to $13,150, which consisted of receipts on account from customers with the exception of a $890 refund from a vendor for merchandise returned in April. 3. Correspondence with suppliers revealed unrecorded obligations at April 15 of $15,162 for April merchandise shipments, including $2,240 for shipments in transit (f.o.b. destination) on that date. 4. Customers acknowledged indebtedness of $44,510 at April 15, 2021. It was also estimated that customers owed another $8,320 that will never be acknowledged or recovered. Of the acknowledged indebtedness, $557 will probably be 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 rate for the past 2 years was in effect during the current year. The corporations audited financial statements disclosed this information: Year Ended December 31 2020 2019 Net sales $506,330 $354,540 Net purchases 275,270 225,420 Beginning inventory 55,000 67,400 Ending inventory 68,450 55,000 6. Inventory with a cost of $6,960 was salvaged and sold for $3,520. 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