Question seven: (15 marks)

Sava Co. uses the retail inventory method to estimate ending inventory for the financial statements, the following data is for the year ended 31/12/2020:

Accounts	Price at cost	Price at retail
Inventory 31/12/2019	$125000	$166,250
Gross sales		258600
Purchases returns	7,000	8750
Freight in	6500
Fright out	7600
Purchases discount	13500
Sales returns		8,500
Employee discount		1,250
Loss from breakage (normal)		750
Markups		18,000
Sales discount		3850
Abnormal shortage	8000	10000
Purchases	140,000	175,000
Markdowns		9,038
Markdown cancellation		2150
Markup cancellation		3000

Required: Computes the ending inventory under cost and LCNRV methods) in 31/12/2020?