The inventory of Swifty Company 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 $1,000, Purchases $34,000, Freight-In $1,300, and Purchase Returns and Allowances $1,500 Determine the merchandise lost by fire, assuming: (a) A beginning inventory of $20,000 and a gross profit rate of 32% on net sales. Estimated cost of merchandise lost