Problem
You are a store owner you are selling a bag of diorite for $78/40 lb. bag (retail). The customer wants to purchase 10 bags. To pay, the customer gives you a personal check for $1000.
Sadly, your cash box does not have the $220 change. You go to the electrical store next door. There you exchange your customer's check for $1000 in cash. You return to the customer and give them the bags (n=10) and the cash change (i.e., $220 in cash).
Later, the check is returned by the bank due to insufficient funds in the buyer's account, and you must then pay back the electrical store the $1000 cash you received from them. You had originally paid $39/bag of diorite wholesale.
You plan to file the loss for this transaction with your insurance company.
What is your total loss on this transaction that you will be submitting for reimbursement?