Our retail business had a fire with $80000.00 in damages and only received $40000.00 from the insurance company. How do I record the damage, the check from the insuance company and the loss. Thanks for your help.

Dr. Cash 40,000
Dr. Extraordinary Loss 40,000 (this number will be an expense that goes on your income statement)
Cr. Inventory (or whatever it was that was lost) 80,000