On November 21, 2013, a fire at Hodge Companys warehouse caused severe damage to its entire inventory of Product Tex. Hodge estimates that all usable damaged goods can be sold for $19,000. The following information was available from the records of Hodges periodic inventory system:

nventory, November 1	$	135,000
Net purchases from November 1, to the date of the fire		147,000
Net sales from November 1, to the date of the fire		227,000

Based on recent history, Hodge