Cost Retail Beginning inventory Purchases Freight-in Purchase returns Net markups Net markdowns Normal spoilage Abnormal spoilage Sales Sales returns $ 90,000 $180,000 355,000 580,000 9,000 7,000 11,000 16,000 12,000 3,000 8,000 540,000 10,000 4,800 The company records sales net of employee discounts. Discounts for 2018 totaled $4,000 Required 1. Estimate Sparrow's ending inventory and cost of goods sold for the year using the retail inventory method and the average cost application 2. Estimate Sparrow's ending inventory and cost of goods sold for the year using the retail inventory method and the conventional application (For all requirements, round Cost-to-retail percentage to two decimal places and final answers to whole dollars.) Average costConventional application $208,000 $442,200 application Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold