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Paco 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.

Paco 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) $ 79,600 Sales revenue $409,800
Purchases 284,900 Sales returns 20,900
Purchase returns 28,000 Gross profit % based on net selling price 35 %

Merchandise with a selling price of $29,600 remained undamaged after the fire, and damaged merchandise has a net realizable value of $8,000. The company does not carry fire insurance on its inventory. Compute the amount of inventory fire loss. (Do not use the retail inventory method.)

Inventory fire loss

$

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