Campbell Corporation uses the retail method to value its inventory. The following information is available for the year 2021: Cost Retail Merchandise inventory, January 1, 2021 $240,000 $285,000 Purchases 699,000 880,000 Freight-in 13,000 Net markups 25,000 Net markdowns Net sales 4,500 850,000 Required: Determine the December 31, 2021, inventory by applying the conventional retail method using the information provided. Cost-to-Retail Cost Retail Ratio Beginning inventory Plus: Purchases Freight-in Net markups $ 240,000 $ 285,000 699,000 880,000 13,000 25,000 1,190,000 Less: Net markdowns 4,500 Goods available for sale 952,000 1,185,500 Cost-to-retail percentage Less: Net sales Estimated ending inventory at retail Estimated ending inventory at cost 850,000 80 %