On January 1, a store had inventory of $48,000. January purchases were $46,000 and January sales were $95,000. On February 1 a fire destroyed most of the inventory. The rate of gross profit was 25% of cost. Merchandise with a selling price of $5,000 remained undamaged after the fire. Compute the amount of the fire loss, assuming the store had no insurance coverage. Label all figures. Retail inventory method. The records of Lohse Stores included the following data: Inventory, May 1, at retail, $14, 500; at cost, $10, 440 Purchases during May, at retail, $42, 900, at cost, $31, 550 Freight-in. $2,000; purchase discounts, $250 Additional markups. $3, 800; markup cancellations. $400; net markdowns, $1, 300 Sales during May, $45, 500 Entries for bad debt expense. A trial balance before adjustment included the following: Give journal entries assuming that the estimate of uncollectible accounts is determined by taking (1) of gross accounts receivable and (2) 3% of gross accounts receivable and assume a $730 debit allowance account balance