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On April 15, 2021, fire damaged the office and warehouse of Splish Corporation. The only accounting record saved was the general ledger, from which the

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

SPLISH CORPORATION MARCH 31, 2021

Cash

$21,130

Accounts receivable

43,910

Inventory, December 31, 2020

69,020

Land

33,550

Buildings

110,370

Accumulated depreciation

$40,189

Equipment

3,848

Accounts payable

24,887

Other accrued expenses

2,706

Common stock

99,400

Retained earnings

48,130

Sales revenue

140,050

Purchases

48,130

Miscellaneous expense

25,404

$355,362

$355,362

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 $13,410: $6,150 paid to accounts payable as of March 31, $3,595 for April merchandise shipments, and $4,219 paid for other expenses. Deposits during the same period amounted to $12,374, which consisted of receipts on account from customers with the exception of a $937 refund from a vendor for merchandise returned in April.
3. Correspondence with suppliers revealed unrecorded obligations at April 15 of $14,760 for April merchandise shipments, including $2,147 for shipments in transit (f.o.b. destination) on that date.
4. Customers acknowledged indebtedness of $42,090 at April 15, 2021. It was also estimated that customers owed another $7,330 that will never be acknowledged or recovered. Of the acknowledged indebtedness, $546 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 $492,930 $366,110
Net purchases 259,130 248,030
Beginning inventory 47,600 63,260
Ending inventory 69,020 47,600
6. Inventory with a cost of $7,420 was salvaged and sold for $3,220. 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 $

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