On November 21, 2016, 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 $23,000. 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 $155,000 151,000 Net sales from November 1 to the date of 231,000 the fire Based on recent history, Hodge's gross profit ratio on Product Tex is 40% of net sales. Required: Calculate the estimated loss on the inventory from the fire, using the gross profit method. loss from fire