Question $4.$ Gross Profit Inventory Estimation.

A flood swept away the inventory stored in a warehouse in June.

Reconstructed data follows:

Sales up to the date of the flood: $$200,000$

Gross profit as a percentage of sales: $75\%$

Gross purchases up to the date of the flood: $$120,000$

Beginning inventory: $$20,000$

Purchases returns and allowances up to the date of the flood: $$8,000$

Freight$-$in: $$3,500$

Sales returns: $$15,000$

Required: Compute the loss of inventory due to the flood.