Sheridan Company lost most of its inventory in a fire in December just before the year-end physical inventory was taken. The corporations books disclosed the following.

Beginning inventory		$160,900		Sales revenue		$608,500
Purchases for the year		382,100		Sales returns		24,300
Purchase returns		30,900		Rate of gross profit on net sales		30	%

Merchandise with a selling price of $22,700 remained undamaged after the fire. Damaged merchandise with an original selling price of $14,600 had a net realizable value of $5,500. Compute the amount of the loss as a result of the fire, assuming that the corporation had no insurance coverage.

Amount of the loss