The inventory of Monty Corp. 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 $$52,000,$ Sales Returns and Allowances $$1,500,$ Purchases $$35,500,$ Freight$-$In $$1,400,$

and Purchase Returns and Allowances $$1,600.$

Determine the merchandise lost by fire, assuming:

A beginning inventory of $$21,500$ and a gross profit rate of $40\%$ on net sales.

Estimate cost of merchandise lost