Danes Company uses the retail inventory method to estimate its inventory for interim statement purposes. Data relating to computation of the inventory at July 31, 2020, are as follows: Cost P 700,000 P 3,500,000 Retail P 1,100,000 P 5,000,000 Inventory 2/1/20 Purchases Additional markups Sales Estimated normal shoplifting losses Under the approximately lower of average cost or market retail method, Danes cost of sales at July 31, 2020, is P 900,000 P 6,000,000 P 100,000