LO5 Retail Method E8A. Warmer's Dress Shop had net retail sales of $250,000 during the current year. The following additional information was obtained from the company's accounting records: 293 1. Using the retail method, estimate the company's ending inventory at cost. 2. Assume that a physical inventory taken at year end revealed an inventory on hand of $18,000 at retait vatue. What is the estimated amotint of inventory shrinkage (loss due to theft, damage, ete.) at cost using the retail method