The following information is available for the current year: Cost Retail Beginning inventory 650,000 1,200,000 Purchases 9,000,000 14,700,000 Freight in 200,000 Purchase returns 300,000 500,000 Purchase allowances 150,000 Departmental transfer in 200,000 300,000 Net markup 300,000 Net markdown 1,000,000 Sales 9,500,000 Sales discounts 100,000 Employee discounts 500,000 Estimated normal shoplifting losses 600,000 Estimated normal shrinkage 400,000