Raleigh Department Store uses the conventional retail method for the year ended December 31, 2016. Available information follows:

a) The inventory at January 1, 2016, had a retail value of $37,000 and a cost of $30,090 based on the conventional retail method.

	Cost			Retail
Gross purchases	$	177,030		$	410,000
Purchase returns		5,700			28,000
Purchase discounts		4,200
Gross sales					345,000
Sales returns					5,500
Employee discounts					3,000
Freight-in		29,500
Net markups					17,000
Net markdowns					28,000