The inventory of Pina Colada 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 $53,000, Sales Returns and Allowances $1,100, Purchases $32,500, Freight-In $1,300, and Purchase Returns and Allowances $1,700. Determine the merchandise lost by fire, assuming:

A beginning inventory of $19,500 and a gross profit rate of 45% on net sales. Estimated cost of merchandise lost $ e Textbook and Media A beginning inventory of $32,500 and a gross profit rate of 30% on net sales. Estimated cost of merchandise lost $