The inventory of Dogen Company was destroyed by fi re on March 1. From an examination of the accounting records, the following data for the fi rst 2 months of the year are obtained: Sales Revenue $51,000, Sales Returns and Allowances $1,000, Purchases $31,200, Freight-in $1,200, and Purchase Returns and Allowances $1,400. Instructions Determine the merchandise lost by fi re, assuming: (a) A beginning inventory of $20,000 and a gross profi t rate of 40% on net sales. (b) A beginning inventory of $30,000 and a gross profi t rate of 30% on net sales