Required information Skip to question [The following information applies to the questions displayed below.] Raleigh Department Store uses the conventional retail method for the year ended December 31, 2022. Available information follows: The inventory at January 1, 2022, had a retail value of $51,000 and a cost of $38,060 based on the conventional retail method. Transactions during 2022 were as follows: Cost Retail Gross purchases $ 344,940 $ 550,000 Purchase returns 6,500 16,000 Purchase discounts 5,600 Sales 544,000 Sales returns 5,000 Employee discounts 6,000 Freight-in 29,500 Net markups 31,000 Net markdowns 16,000 Sales to employees are recorded net of discounts. The retail value of the December 31, 2023, inventory was $60,180, the cost-to-retail percentage for 2023 under the LIFO retail method was 75%, and the appropriate price index was 102% of the January 1, 2023, price level. The retail value of the December 31, 2024, inventory was $51,450, the cost-to-retail percentage for 2024 under the LIFO retail method was 74%, and the appropriate price index was 105% of the January 1, 2023, price level.