The records of Alaska Company provide the following information for the year ended December 31.

Required
1. Use the retail inventory method to estimate the company’s year-end inventory at cost.
2. A year-end physical inventory at retail prices yields a total inventory of $1,686,900. Prepare a calculation showing the company’s loss from shrinkage at cost and at retail.

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Beginning inventory, January 1..... Cost of goods purchased..... Sales ...... Sales returns... At Cost At Retail $469,010 $928,950 3,376,050 6,381,050 5,595,800 42,800