Meiji Company has determined its December 31, 2020 inventory on a FIFO basis at P 5,000,000. information pertaining to that inventory follows:

The records of Serene Retail Store report the following data for the month of January 2020:

Sales	12,000,000		Markdown	600,000
Sales allowance	100,000		Markdown cancellation	100,000
Sales returns	500,000		Freight on purchases	100,000
Employee discounts	200,000		Purchases at cost	8,950,000
Normal losses at retail	800,000		Purchase returns at cost	450,000
Initial markup on purchases	6,200,000		Purchase returns at retail	600,000
Additional markup	500,000		Beginning inventory at cost	600,000
Markup cancellations	100,000		Beginning inventory at retail	800,000
Abnormal losses at cost	200,000		Abnormal losses at retail	250,000

What is the estimated cost of goods sold using the average retail inventory method?

Group of answer choices

7,450,000

7,550,000

5,400,000

7,500,000

Meiji records losses that result from applying the lower of cost or market rule.

What amount of inventory shall be presented on December 31, 2020?

Group of answer choices

4,100,000

4,500,000

5,000,000

4,800,000