Question 3 (10 marks, 20 minutes) Part 1 The records of Ghostbusters Inc report the following data for the month of April: Sales Purchases (at cost) $155,000 $ 65,000 Sales returns 12,000 Purchases (at retail price) 145,000 Markups 17,000 Purchase returns (at cost) 3,000 Markup cancellations 2,000 Purchase returns (at retail price) 4,800 Markdowns 11,000 Beginning inventory (at cost) 26,000 Markdown cancellations 3,500 Beginning inventory (at retail price) 51,880 Freight on purchases 3,000 Required: a) Estimate the ending inventory using the conventional retail inventory method (6 marks). a) Assume that the actual ending inventory at retail prices is $44,000. Prepare the journal entry (if any required) to record the loss due to shrinkage (2 marks). Part 2 On September 15, 2021, Crazy Hat Corporation factors $550,000 of accounts receivable with France Financing, Inc. on a without-recourse basis. Crazy Hat Corporation will collect the receivables. France Financing assesses a finance charge of 6% of the amount of accounts receivable. Required: Prepare the journal entry on September 15, 2021, for Crazy Hat to record the sale of receivables (2 marks).