Sandhill 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) Purchases Purchase returns $79,600 284,900 Inventory fire loss $ 28,000 Sales revenue Sales returns Gross profit % based on net selling price $409,800 20,900 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 fire loss incurred. (Do not use the retail inventory method.)

Sandtill Compary lost nost of its inventory in a fire in December just before the vear end physical inventory was taker. Corporate recurds diselose the following Mirchandise with a selling cirice of $2%,600 remained undamajed after the fire, and daraged merduandise has a net realizable value of $8,000. The company does not carry fre insurance on its inventory. Coimpute the fire ioss incurred (Donot use the retailinentory method) Inventory fire loss