Arganon Ltd. had the following ending inventory balances for each of the past six years: Cost 20x3 20X4 20x5 20x6 20x7 20x8 $ 0 20,000 23,000 22,000 28,000 30,000 Net Realizable Value $ 0 22,000 17,000 21,000 20,000 31,000 Required: For each year, 20x4 through 20X8, determine the holding loss (gain) under lower-of-cost-or-NRV valuation. (Loss amounts should be indicated by minus sign. Leaving no cells blank, be certain to enter "zero" wherever required) Year-end Allowance to reduce inventory to NRV- Opening Balance Allowance to reduce inventory to NRV-Amount Required Holding Loss (Gain) 20X4 20X5 20X6 20X7 20X8 The records of Diskount Department Stores Inc. provided the following data for 20x5: $540,000 1,350 6,400 3,700 4,400 Sales (gross) Sales returns Additional markups Additional markup cancellations Markdowns Purchases: At retail At cost Purchase returns: At retail At cost Freight on purchases Beginning inventory: At retail At cost Markdown cancellations 590,000 312,500 2,700 1,050 3,050 54,000 32,000 1,550 Required: 1. Estimate the valuation of the ending inventory and cost of goods sold using the gross margin method. Last year's gross margin percentage was 50%. Estimated cost of ending inventory Estimated cost of goods sold 2. Estimate the valuation of the ending inventory and cost of goods sold using the retail sales method, which approximates lower-of- cost-or-NRV valuation. (Round "Cost ratio" to the nearest whole percentage.) Estimated cost of ending inventory Estimated cost of goods sold 3. Which method is likely to be more accurate? Retail sales method Gross margin method