Selected data on merchandise inventory, purchases, and sales for Segal Co and Iroquois Co. are as follows:

Instructions1. Determine the estimate cost of the merchandise inventory of Segal Co. on March 31 by the retail method, presenting details of the computations.2. a. Estimate the cost of the merchandise inventory of Iroquois Co. on March 31 by the gross profit method, presenting details of the computations.2. Assume that Iroquois Co. took a physical inventory on March 31 and discovered that $396,500 of merchandise was on hand. What was the estimate loss of inventory due to theft or damage during January thruMarch?

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Cost Retail Segal Co. $ 298.000 $ 375,000 Merchandise inventory, March 1 Transactions during March Purchases (net) 4,850,000 6225.000 6,320,000 Sales Sales retums and allowances 245,000 Iroquois Co. $ 300,000 Merchandise inventory. January 1 Transactions during January thnu March Purchates (net) 4,150,000 Sales 6.900,000 Sales retums and allowances 175,000 Estimated gross profit rate 40%