On November $21,2021,$ a fire at Hodge Company's warehouse caused severe damage to its entire inventory of Product

Tex. Hodge estimates that all usable damaged goods can be sold for $$22,000.$ The following information was available

from the records of Hodge's periodic inventory system:

Inventory, November $1$

Net purchases from November $1,$ to the date of the fire $$150,000$

$150,000$

Net sales from November $1,$ to the date of the fire $230,000$

Based on recent history, Hodge's gross profit ratio on Product Tex is $35\%$ of net sales.

Required:

Calculate the estimated loss on the inventory from the fire, using the gross profit method.