Current Attempt in Progress Late in 2017, Joan Seceda and four other investors took the chain of Pearl Department Stores private, and the company has just completed its third year of operations under the ownership of the investment group. Andrea Selig, controller of Pearl Department Stores, is in the process of preparing the year-end financial statements. Based on the preliminary financial statements, Seceda has expressed concern over inventory shortages, and she has asked Selig to determine whether an abnormal amount of theft and breakage has occurred. The accounting records of Pearl Department Stores contain the following amounts on November 30, 2020, the end of the fiscal year. Cost Retail Beginning inventory $66,700 $101,600 Purchases 280,932 400,400 Net markups 50,800 Net markdowns Sales revenue 108,600 320,600 According to the November 30, 2020, physical inventory, the actual inventory at retail is $118,500