Exercise 9-16 xYour answer is incorrect. Try again Windsor Company lost most of its inventory in a fire in December just before the year-end physical inventory was taken. The corporation's books disclosed the following Beginning inventory Purchases for the year 398,600 Sales returns Purchase returns $632,700 26,400 33,000 Rate of gross profit on net sales 40 % Merchandise with a selling price of $22,200 remained undamaged after the fire. Damaged merchandise with an original selling price of $14,700 had a net realizable value of $5,400 Compute the amount of the loss as a result of the fire, assuming that the corporation had no insurance coverage Amount of the loss