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Assuming that Hsinchu Department Store has a normal gross margin of 40% and inventory of $80,000 on January 1, 2021, the accounts show the net sales revenue and purchases for January as follows: Net Sales Revenue $120,000, Purchase $45,000, Purchase Discount $1,500, Purchase Returns and Allowances $3,500, Purchase Freight $2,000. Please estimate the closing inventory of Hsinchu Department Store on January 31st using gross margin method. (10%)