P 9-8 Retail inventory method; conventional CLO9-4 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 2021: Inventory, October 1, 2021: $ At cost 20,000 At retail 30,000 Purchases (exclusive of freight and returns): At cost 100,151 At retail 146,495 Freight-in 5,100 Purchase returns Purchases (exclusive of freight and returns): At cost 100,151 At retail 146,495 Freight-in 5,100 Purchase returns: At cost 2,100 At retail 2,800 Additional markups 2,500 Markup cancellations 265 Markdowns (net) () 800 Normal spoilage and breakage 4,500 Sales 140,000 Sales returns 4,270 Required: 1. Using the conventional retail method, prepare a schedule computing estimated lower of cost or market (LCM) inventory for October 31, 2021. 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