Raleigh Department Store uses the conventional retail method for the year ended December 31, 2019. Available information follows: a. The inventory at January 1, 2019, had a retail value of $52,000 and a cost of $39,960 based on the conventional retail b. Transactions during 2019 were as follows: method. Gross purchases Purchase returns Purchase discounts Gross sales Sales returns Employee discounts Freight-in Net markups Net markdowns Cost Retail $356,160 $560,000 6,600 17,000 5,700 551,500 8,000 2,500 30,000 32,000 17,000 Sales to employees are recorded net of discounts. C. The retail value of the December 31, 2020, inventory was $71,070, the cost-to-retail percentage for 2020 under the LIFO retail method was 76%, and the appropriate price index was 103% of the January 1, 2020, price level. d. The retail value of the December 31, 2021, inventory was $52,470, the Eost-to-retail percentage for 2021 under the LIFO retail method was 75%, and the appropriate price index was 106% of the January 1, 2020, price level. Required: 1. Estimate ending inventory for 2019 using the conventional retail method. (Amounts to be deducted should be indicated with a Cost Retail Cost-to- Retail Ratio $ 39,960 X 560,000 Beginning inventory Add: Purchases Add: Freight-in Less: Purchase returns Less: Purchase discounts Add: Net markups 52,000 X $ 356,160 30,000 (6,600) (5,700) (17,000) Less: Net markdowns Goods available for sale 32,000 614,960 (17,000) 597,960 $ 425,860 Cost-to-retail percentage 71% X + $ 551,500 (8,000) Less: Net sales Sales Sales returns Employee discounts Estimated ending inventory at retail Estimated ending inventory at cost (2,500) 595,460 422,777 X