On July 15, 2026, fire damaged the office and warehouse of Teal Corporation. The only accounting record saved was the general ledger, from which the following trial balance was prepared: AL DALANCE June 30, 2026 Cash $10,600 Accounts receivable 165,000 Inventory, December 31, 2025 169,000 Land 63,500 Buildings 282,000 Accumulated depreciation $60,200 Equipment 26,700 Accounts payable 162,900 Other accrued expenses Common stock Retained earnings Sales revenue 27,500 9,000 362,100 695,300 Purchases 524,800 Miscellaneous expense 75,400 $1,317,000 $1,317,000 The following data and information have been gathered. 1. The fiscal year of the corporation ends on December 31. 2. 3. 4. 5. An examination of the July bank statement and canceled checks revealed that checks written during the period July 1-15 totaled $59,300: $51,600 paid to accounts payable as of June 30, $2,800 for July merchandise shipments, and $4,800 paid for other expenses. Deposits during the same period amounted to $74,900, which consisted of receipts on account from customers with the exception of a $1,700 refund from a vendor for merchandise returned in July. Correspondence with suppliers revealed unrecorded obligations at July 15 of $28,100 for July merchandise shipments, including $1,500 for shipments in transit (f.o.b. shipping point) on that date. Customers acknowledged indebtedness of $165,700 at July 15, 2026. It was also estimated that customers owed another $13,600 that will never be acknowledged or recovered. Of the acknowledged indebtedness, $2,100 will probably be uncollectible. The companies insuring the inventory agreed that the corporation's 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 corporation's audited financial statements disclosed this information: Year ended December 31 2025 2024 Net sales $1,309,000 $1,180,000 Net purchases 1,144,000 973,100 Beginning inventory 135,600 148,400 Ending inventory 169,000 135,600 6. Inventory with a cost of $9,600 was salvaged and sold for $2,800. The balance of the inventory was a total loss. Complete the schedule computing the gross profit and the schedule to determine the amount of inventory fire loss. (Round ratios for computational purposes to O decimal places, e.g 78% and final answer to 0 decimal places, e.g. 28,987.) Inventory, 1/1/26 Purchases, 1/1/26 - 6/30/26 July merchandise shipments paid Unrecorded purchases on account Total Less: Shipments in transit Merchandise returned Merchandise available for sale Less estimated cost of sales: Sales, 1/1/26 - 6/30/26 TEAL CORPORATION Computation of Inventory Fire Loss $ Sales, 7/1/26 - 7/15/26 Receivables acknowledged at 7/15/26 Estimated receivables not acknowledged Total Add collections, 7/1/26 - 7/15/26 Total Less receivables, 6/30/26 Total sales 1/1/26 - 7/15/26 Less gross profit Cost of Goods Sold Estimated merchandise inventory Less: Sale of salvaged inventory Inventory fire loss Computation of Gross Profit Rate $ $ A > > A % >