5 Part 1 of 3 285 points eBook Raleigh Department Store uses the conventional retail method for the year ended December 31, 2019. Available information follows: a. The inventory at January 1, 2019, had a retail value of $50,000 and a cost of $36,200 based on the conventional retail method. b. Transactions during 2019 were as follows: Cost Gross purchases $333,900 Purchase returns 6,400 Retail $540,000 15,000 Purchase discounts 5,500 Gross sales 500,000 Sales returns 8,000 Employee discounts 5,500 Freight-in 29,000 Net markups 30,000 Net markdowns 15,000 Print References Sales to employees are recorded net of discounts. c. The retail value of the December 31, 2020, inventory was $104,325, the cost-to-retail percentage for 2020 under the LIFO retail method was 70%, and the appropriate price index was 107% of the January 1, 2020, price level. d. The retail value of the December 31, 2021, inventory was $53,350, the cost-to-retail percentage for 2021 under the LIFO retail method was 69%, and the appropriate price index was 110% of the January 1, 2020. price level. Required: 1. Estimate ending inventory for 2019 using the conventional retail method. (Amounts to be deducted should be indicated with a minus sign.) Cost Retail Cost-to-Retail Ratio Beginning inventory Add: Purchases $ 36,200 $ Add: Freight-in 333,900 29,000 50,000 540,000 Less: Purchase returns (6,400) (15,000) Less: Purchase discounts (5,500) Add: Net markups 30,000 605,000 Less: Net markdowns (15,000) Goods available for sale $ 387,200 590,000 Cost-to-retail percentage Less: Net sales Sales Sales returns $ 500,000 (8,000) Employee discounts Estimated ending inventory at retail $ 590,000 Estimated ending inventory at cost $ 59,200 64%