$On$ April $15,2026,$ fire damaged the office and warehouse $of$ Waterway Corporation. The only accounting record saved was the

general ledger, from which the balance sheet data below was prepared.

The following data and information have been gathered.

The fiscal year $of$ the corporation ends $on$ December $31.$

$An$ examination $of$ the April bank statement and canceled checks revealed that checks written during the period April $1-15$

totaled $$10,660$:$$4,674$ paid $to$ accounts payable $asof$ March $31,$ $$2,788$ for April merchandise shipments, and $$3,198$ paid

for other expenses. Deposits during the same period amounted $to$ $$10,619,$ which consisted $of$ receipts $on$ account from

customers with the exception $ofa$ $$779$ refund from a vendor for merchandise returned $in$ April.

Correspondence with suppliers revealed unrecorded obligations $at$ April $15of$ $$12,792$ for April merchandise shipments,

including $$1,886$ for shipments $in$ transit $(f.o.b.$ shipping point$)on$ that date. Customers acknowledged indebtedness $of$ $$37,720at$ April $15,2026.It$ was also estimated that customers owed another

$$6,560$ that will never $be$ acknowledged $or$ recovered. $Of$ the acknowledged indebtedness, $$492$ will probably $be$

uncollectible.

The companies insuring the inventory agreed that the corporation's fire$-$loss claim should $be$ based $on$ the assumption that

the overall gross profit rate for the past $2$ years was $in$ effect during the current year. The corporation's audited financial

statements disclosed this information:

Inventory with a cost $of$ $$5,740$ was salvaged and sold for $$2,870.$ The balance $of$ the inventory was a total loss.

Compute the amount $of$ inventory fire loss.

Inventory fire loss