Raynor Company lost most of its inventory in a fire just before the company was to take its year-end physical inventory. The companys records disclosed the following. Beginning inventory 80,000 Sales revenue 415,000 Purchases 290,000 Sales returns 21,000 Purchase returns 28,000 Gross profit based on selling price = 35% Merchandise with a selling price of $80,000 was not damaged by the fire. The damaged merchandise has a net realizable value of $8,150. Required: Prepare a schedule computing the fire loss (Do not use the retail inventory method)

Raynor Company lost most of its inventory in a fire just before the company was to take it's year-end physical inventory. The company's records disclosed the following. Merchandise with a selling price of $80,000 was not damaged by the fire. The damaged merchandise has a net realizable value of $8,150. Required: Prepare a schedule computing the fire loss (Do not use the retail inventory method)