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

SHEFFIELD CORPORATION MARCH 31, 2021
Cash	$19,110
Accounts receivable	36,050
Inventory, December 31, 2020	72,770
Land	35,590
Buildings	106,820
Accumulated depreciation		$37,831
Equipment	3,460
Accounts payable		24,749
Other accrued expenses		6,429
Common stock		98,100
Retained earnings		52,200
Sales revenue		135,270
Purchases	52,200
Miscellaneous expense	28,579
	$354,579	$354,579

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 $13,230: $5,714 paid to accounts payable as of March 31, $3,561 for April merchandise shipments, and $3,559 paid for other expenses. Deposits during the same period amounted to $11,868, which consisted of receipts on account from customers with the exception of a $949 refund from a vendor for merchandise returned in April.

3.

Correspondence with suppliers revealed unrecorded obligations at April 15 of $16,306 for April merchandise shipments, including $2,488 for shipments in transit (f.o.b. destination) on that date.

4.

Customers acknowledged indebtedness of $44,740 at April 15, 2021. It was also estimated that customers owed another $8,800 that will never be acknowledged or recovered. Of the acknowledged indebtedness, $608 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		$568,690		$395,930
Net purchases		294,380		258,400
Beginning inventory		53,800		69,890
Ending inventory		72,770		53,800

6.

Inventory with a cost of $7,150 was salvaged and sold for $3,510. The balance of the inventory was a total loss.

Compute the amount of inventory fire loss