Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods sold. Data for 2011 are as follows: Cost Retail Beginning inventory $ 80,000 $ 160,000 Purchases 323,000 516,800 Freight-in 9,100 Purchase returns 6,700 10,300 Net markups 16,500 Net markdowns 11,300 Normal spoilage 2,800 Abnormal spoilage 4,400 7,800 Sales 475,456 Sales returns 10,200 The company records sales net of employee discounts. Discounts for 2011 totaled $3,700. Required: (1) Estimate Sparrow