Problem 3: The Santa Clara Sporting Goods Store installed the retail method of accounting for its mercha inventory as of January 1, 2013. Cost Retail Inventory, January 1 $28,900 $ 40,000 Purchases (including freight 86,200 111,800 charges) Purchase returns 1,500 1,800 Markups 15,000 Markdowns 4,000 Net sales 116,000 Required: Estimate the ending inventory and COGS as of December 31, 2013 using conventional retail method (net markdown is NOT included in the computation of the cost to retail ratio)