Problem 9-07 Your answer is incorrect. Try again. On April 15, 2021, 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. WATERWAY CORPORATION MARCH 31, 2021 $20,260 36,360 Cash Accounts receivable Inventory, December 31, 2020 72,580 Land 34,730 Buildings 102,420 $42,069 Accumulated depreciation Equipment 3,821 Accounts payable Other accrued expenses Common stock 25,818 3,251 98,300 Retained earnings 55,670 Sales revenue 125,990 Purchases 55,670 Miscellaneous expense 25,257 $351,098 $351,098 The following data and information have been gathered 1. The fiscal year of the corporation ends on December 31. 2. An examination of the April bank statement and canceled checks revealed that checks written during the period April 1-15 totaled $12,920: $5,962 paid to accounts payable as of March 31, $3,208 for April merchandise shipments, and $3,890 paid for other expenses. Deposits during the same period amounted to $11,681, which consisted receipts on account from customers with the exception of a $888 refund from a vendor for merchandise returned in April 3. Correspondence with suppliers revealed unrecorded obligations at April 15 of $15,338 for April merchandise shipments, including $2,201 for shipments in transit (f.o.b. destination) on that date. 4. Customers acknowledged indebtedness of $47,500 at April 15, 2021. It was also estimated that customers owed another $7,620 that will never be acknowledged or recovered. Of the acknowledged indebtedness, $627 will probably be uncollectible. 5. 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: Year Ended December 31 2020 2019 Net sales $484,530 $378,580 222,600 Net purchases 298,740 Beginning inventory 48,400 67,170 Ending inventory 72,580 48,400 6. Inventory with a cost of $7420 was salvaged and sold for $3,310. The balance of the inventory was a total loss Compute the amount of inventory fire loss. (Round ratios for computational purposes to 2 decimal places, e.g 78.52% and final answer to 0 decimal places, e.g. 28,987.) Inventory fire loss 50493 click if you would like to Show Work for this question: Open Show Work