During the past two months, management of Wallace Lake Computing Supplies was closely watching inventory levels due to suspected shrinkage caused by unknown factors. The physical count on July 31, the end of the current month, shows $48,000 of merchandise actually on hand. The accounting records for prior periods indicate that gross profit should be 30% of the $565,000 net sales for July. Inventory at June 30 was actually $65,000 and July purchases were $385,500. Calculate the estimated:
a. Ending inventory
b. Shrinkage.