The inventory of Sheffield 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 $55,000, Sales Returns and Allowances $1.200, Purchases $36.500,Freight-In $1,300, and Purchase Returns and Allowances $1,700. Determine the merchandise lost by fire, assuming Your answer is incorrect. A beginning inventory of $20,500 and a gross profit rate of 45% on net sales. Estimated cost of merchandise lost s e Textbook and Media Assistance Used X Your answer is incorrect. A beginning inventory of $35,000 and a gross profit rate of 35% on net sales Estimated cost of merchandise lost $ e Textbook and Media Assistance Used