While your stores are small enough to either use the perpetual system or periodic inventory at the end of the accounting period, the ending inventory in the main warehouse needs to be estimated.

Of the inventory reported at the beginning of the year, $$1,850$ million was stored in the warehouse. The rest of the inventory is in the stores.

For that inventory, use the conventional retail method to estimate the ending balance for inventories. The following information is available at the end of the reporting period:

Cost $/$ Retail

Beginning inventory $1,8502,600$

Purchases $4,6165,600$

Net markups $4,000$

Net markdowns $1,500$

Net sales $7,500$

What is the ending inventory?

What is cost of goods sold?

In addition, make sure to add journal entries for the purchases and sales for the warehouse. Assume purchases on credit and cash sales.