Question $5$ of $6$

The inventory of Tamarisk, Inc. was destroyed by fire on March $1.$ From an examination of the accounting records, the following data for the first $2$ months of the year are obtained: Sales Revenue $$53,000,$ Sales Returns and Allowances $$1,400,$ Purchases $$39,000,$ Freight$-$In $$1,200,$ and Purchase Returns and Allowances $$1,700.$

Determine the merchandise lost by fire, assuming:

$($a$)$

Your answer is incorrect.

A beginning inventory of $$21,000$ and a gross profit rate of $45\%$ on net sales.

Estimated cost of merchandise lost $

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