Problem 1 Steelers Retailers, Inc. (the Company) is in its second year of operations. The Company uses the retail inventory method to estimate ending inventory and cost of goods sold. The following data has been summarized for 2020 (all amounts in $): Cost Retail January 1 Inventory 208,800 360,000 Purchases 2,112,000 4,062,500 Freight-in 32,760 Purchase Returns 46,560 91,000 Net Markups 29,480 Net Markdowns 98,600 Abnormal Spoilage 12,200 26,500 Shrinkage (Normal) 8,360 Sales 4,084,500 Sales Returns 81,680 Employee Sales* 13,500 *Employee Sales are recorded at the net selling price. Employees receive a 10% discount. Required: Estimate ending inventory and cost of goods sold using the Average Cost Method. Use space for work. Place answers in the blanks below