Sunland 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		$179,300		Sales revenue		$589,400
Purchases for the year		420,100		Sales returns		23,300
Purchase returns		31,900		Rate of gross profit on net sales		20	%

Merchandise with a selling price of $20,500 remained undamaged after the fire. Damaged merchandise with an original selling price of $15,900 had a net realizable value of $5,700. Compute the amount of the loss as a result of the fire, assuming that the corporation had no insurance coverage.

Amount of the loss $

Please explain - my answer of 95700 was incorrect