Question 2 (7 points) A fire destroyed most of the inventory of a furniture store. Before the fire the records showed the following: Sales to date of the fire $410,000 Sales returns 10,000 75,000 Beginning Inventory Purchases 375,000 Freight in 1,000 Freight Out 3,000 Depreciation Expense 14,000 Purchases Discounts 2,000 Normal markup on Cost was 1/4 or 25% Part A: If the markup on cost was 1/4, what was the Markup on Retail? PART B: Using the gross profit method, what was the estimated cost of the ending inventory PRIOR to the fire