Problem 9-7 On April 15, 2018, fire damaged the office and warehouse of Culver Corporation. The only accounting record saved was the general ledger, from which the balance sheet data below was prepared. CULVER CORPORATION MARCH 31, 2018 Cash $19,400 Accounts receivable 36,420 Inventory, December 31, 2017 78,600 Land 38,130 Buildings 100,320 Accumulated depreciation $40,103 Equipment 3,467 Accounts payable 24,969 Other accrued expenses 5,871 Common stock 105,900 Retained earnings 52,420 Sales revenue 128,050 Purchases 52,420 Miscellaneous expense 28,556 $357,313 $357,313 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 115 totaled $12,460: $6,186 paid to accounts payable as of March 31, $3,394 for April merchandise shipments, and $4,129 paid for other expenses. Deposits during the same period amounted to $12,742, which consisted of receipts on account from customers with the exception of a $997 refund from a vendor for merchandise returned in April.

3. Correspondence with suppliers revealed unrecorded obligations at April 15 of $14,396 for April merchandise shipments, including $2,194 for shipments in transit (f.o.b. shipping point) on that date.

4. Customers acknowledged indebtedness of $42,020 at April 15, 2018. It was also estimated that customers owed another $8,280 that will never be acknowledged or recovered. Of the acknowledged indebtedness, $642 will probably be uncollectible.

5. The companies insuring the inventory agreed that the corporations 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 corporations audited financial statements disclosed this information: Year Ended December 31 2017 2016 Net sales $568,220 $368,920 Net purchases 298,400 215,960 Beginning inventory 54,300 62,480 Ending inventory 78,600 54,300

6. Inventory with a cost of $6,700 was salvaged and sold for $3,710. 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 $