Grand Department Store, Inc., uses the retail inventory method to estimate ending inventory for its monthly financial statements. The following data pertain to a single department for the month of October 2018: Inventory, October 1, 2018: At cost 20,000 At retail 30,000 Purchases (exclusive of freight and returns) At cost At retail Freight-in 100,151 146,495 5,100 Purchase returns: At cost At retail Additional markups Markup cancellation:s Markdowns (net) Normal spoilage and breakage Sales 2,100 2,800 2,500 265 800 4,500 135,730 Required: 1. Using the conventional retail method, prepare a schedule computing estimated lower of cost or market (LCM) inventory for October 31, 2018. 2. A department store using the conventional retail inventory method estimates the cost of its ending inventory as $29,000. An accurate physical count reveals only $22,000 of inventory at lower of cost or market. List the factors that may have caused the difference between computed inventory and the physical count