On August 15, 1997, a hurricane damaged a building of Wright Company. The entire inventory and many accounting records stored in the building were completely destroyed. Through the use of the remaining records, the following data are assembled:

Inventory, January 1 $ 375,000

Purchases, January 1August 15 1,385,000

Cash sales, January 1August 15 225,000

Collection of accounts receivable, January 1August 15 2,115,000

Accounts receivable, January 1 175,000

Accounts receivable, August 15 265,000

Gross profit percentage on sales 32%

HINT: You will need to estimate total sales in order to compute the estimated Cost of Goods Sold.

The amount of inventory loss as a result of the hurricane is -

• $267,400
• $107,600
• $260,600
• None of these
• $230,000