JayCO Inc. in the appliance part business. The company buys appliance repair parts from the major manufacturers of appliances. At the beginning of the fiscal year the inventory had a debit balance $2,750,000. During the year JayCo Inc. purchased $10,000,000 worth of parts. The sales for the fiscal year amounted to $18,500,000. At the end of the fiscal year the company took a physical count of its inventory which came to $1,800,000. The sales returns and allowances for the year