The inventory of Sarasota's Merchandise Company was destroyed by fire on June $1.$ From an examination of the accounting records,

the following data for the first five months of the year were obtained: Sales $$91,000$; Sales Returns and Allowances $$1,500$; Sales

Discounts $$600$; Delivery Expense $$2,500$; Purchases $$51,600$; Freight In $$2,500$; Purchase Returns and Allowances $$2,600$; and

Purchase Discounts $$1,300.$

Determine the inventory lost by fire, assuming a beginning inventory of $$25,400$ and a gross profit margin of $40\%.$

Inventory lost by fire