You are called by Tim Duncan of Spurs Co. on July 16 and asked to prepare a claim for insurance as a result of a theft that took place the night before. You suggest that an inventory be taken immediately. The following data are available.

Inventory, July 1 ………………………………….....................……. $ 38,000

Purchases—goods placed in stock July 1–15 …….......……… 85,000

Sales revenue—goods delivered to customers (gross) … 116,000

Sales returns—goods returned to stock ……………........…….. 4,000

Your client reports that the goods on hand on July 16 cost $30,500, but you determine that this figure includes goods of $6,000 received on a consignment basis. Your past records show that sales are made at approximately 40% over cost. Duncan’s insurance covers only goods owned.

Instructions

Compute the claim against the insurance company.