On November $21,2024,$ a fire at Hodge Company's warehouse caused severe damage to its entire inventory of Product Tex. Hodge estimates that all usable damaged goods can be sold for $$30,000.$ The following information was available from the records of Hodge's periodic inventory system:

Inventory, November $1,2024$

Net purchases from November $1,$ to the date of the fire Net sales from November $1,$ to the date of the fire

$$190,000$

$158,000$

$238,000$

Based on recent history, Hodge's gross profit ratio on Product Tex is $40\%$ of net sales.

Required:

Calculate the estimated loss on the inventory from the fire, using the gross profit method.

Estimated loss from fire