Pet Emporium had a robbery on the weekend in which a large amount of inventory was taken. The loss is covered completely by insurance. A physical inventory count determined that the cost of the remaining merchandise is $58,500. The following additional information is available:

Required
1. Prepare an estimate of ending merchandise inventory using the retail method.
2. Calculate the cost of the stolen inventory.

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Beginning merchandise inventory..... Purchase returns and allowances.... Purchases............…... Transportation-in... Sales................ Sales returns and allowances.. At Cost At Retail $75,000 $ 93,750 15,000 20,000 1,275,000 1,731,250 18,750 1,642,500 18,000