Current Attempt in Progress X Your answer is incorrect. Novak Company lost most of its inventory in a fire in December just before the year-end physical inventory was taken. Corporate records disclose the following. Inventory (beginning) Purchases Purchase returns $ 80,800 287,600 28,500 Sales revenue Sales returns Gross profit % based on net selling price $420,800 20,700 32 % Merchandise with a selling price of $29,900 remained undamaged after the fire, and damaged merchandise has a net realizable value of $7,700. The company does not carry fire insurance on its inventory. Compute the amount of inventory fire loss. (Do not use the retail inventory method.) Inventory fire loss $ 175,344