On November $21,2024,$ a fire at Hodge Company$$s warehouse caused severe damage to its entire inventory of Product Tex. Hodge estimates that all usable damaged goods can be sold for $$31,000.$ The following information was available from the records of Hodge$$s periodic inventory system:

Inventory, November $1,2024$ $ $195,000$

Net purchases from November $1,$ to the date of the fire $159,000$

Net sales from November $1,$ to the date of the fire $239,000$

Based on recent history, Hodge$$s gross profit ratio on Product Tex is $30\%$ of net sales.

Required:

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