Problem 4 Christian, Inc. lost most of its inventory in a fire in December just before the year end inventory was to be taken. Their books provided the following information: Beginning inventory $170,000 Sales $650,000 Purchases $390,000 Sales returns $24,000 $30,000 Purchase returns 30% Rate of gross profit on net sales Merchandise with a selling price of $20,000 remained undamaged after the fire. Damaged merchandise with an original selling price of $15,000 had a net realizable value of $8,000 Required: Compute the amount of loss as a result of the fire