Please could i get help solving this problem. Thanks in advance!

Question 8 Your answer is incorrect. Try again. Novak 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 Sales revenue $632,700 26,400 $161,400 Rate of gross profit on net sales 40 % 33,000 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 177,500