Yu Ltd. lost most of its inventory in a fire in December just before the year-end physical inventory was taken. Company records disclose the following (yen in thousands).

Merchandise with a selling price of ¥30,000 remained undamaged after the fire, and damaged merchandise has a residual value of ¥8,150. The company does not carry fire insurance on its inventory.
Instructions
Prepare a formal labeled schedule computing the fire loss incurred. (Do not use the retail inventory method.)

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Inventory (beginning) ¥ 80,000 Sales ¥415,000 290,000 Sales returns 28,000 Gross profit % based on net selling price Purchases 21,000 35% Purchase returns