On January 1 a store had inventory of P55,000. January purchases were P46,000 and January sales were P105,000. 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 P7,500 remained undamaged after the fire. Compute the amount of the fire loss, assuming the store had no insurance coverage. P14,750 P16,625 P11,000 P 9,500