P9 - 6 ( LO4 ) ( Gross Profit Method ) Eastman Company lost most of its inventory in a fire in December just before the year-end physical inventory was taken . Corporate records disclose the following. Inventory ( beginning ) $ 80,000 Sales revenue $: 415, 0010 Purchases 291,0100 Sales returns* 21,01010 Purchase returns 28,0100 Gross profit " based on net selling price* Merchandise with a selling price of $30,000 remained undamaged after the fire , and damaged merchandise has a net realizable* value of $8, 150 . The company does not carry fire insurance on its inventory* Instructions Prepare a formal labeled schedule computing the fire loss incurred . ( Do not use the retail inventory method . )