Warlock Brands, Inc. lost most of its inventory in a fire on November 30. The corporation's books disclosed the followin transactions through 11/30: Inventory, beginning 170,000 Purchases 390,000 Purchase returns 30,000 Sales revenue 650,000 Sales returns 30,000 Gross profit % on sales 40% Notes: Merchandise with a cost of 21,000 remained undamaged after the fire. Damaged merchandise with a selling price of 30,000, a cost of 15,000, and a net realizable value of 5,300 was sold. Required: Compute the inventory loss using the gross profit method. Warlock's has inventory insurance, and the agent wrote a check to after the fire. Inventory, beginning 170,000 Purchases 390,000 Purchase returns Goods available for sale Purchases 390,000 Purchase returns Goods available for sale Sales |-650,000 Sales returns Net sales Gross profit is 40% of sales Cost of goods sold 21,000 Ending inventory Undamaged inventory Damaged inventory that can be sold: Sales price $25,000, cost $15,000, and NRV $5,300 Inventory loss Write the journal entry to record the loss on December 1. Account Debit Credit Ending inventory 21,000 Undamaged inventory Damaged inventory that can be sold: Sales price $25,000, cost $15,000, and NRV $5,300 Inventory loss Write the journal entry to record the loss on December 1. Account Debit Credit