The inventory of Metlock, Inc. was destroyed by fire on March 1. From an examination of the accounting records, the following data for the first 2 months of the year are obtained: Sales Revenue $53,000, Sales Returns and Allowances $1,300, Purchases $32,000, Freight-In $1,200, and Purchase Returns and Allowances $1,700. Determine the merchandise lost by fire, assuming: A beginning inventory of $22,500 and a gross profit rate of 45% on net sales. Estimated cost of merchandise lost $ e Textbook and Media A beginning inventory of $34.500 and a gross profit rate of 35% on net sales. Estimated cost of merchandise lost $