Red Department Store uses the retail inventory method. Information relating to the computation of the inventory at December 31, 2019, is as follows:

Estimated normal shrinkage is 2% of sales.

Required:
Prepare a schedule to calculate the estimated ending inventory at the lower of average cost or market at December 31,
2019, using the retail inventory method. Show supporting computations in good form. Round the cost-to-retail ratio
to 3 decimal places.

Retail Retail Cost Cost $ 32,000 Markups $ 80,000 $ 60,000 Inventory at January 1, 2019 Markup cancellations Markdowns Sales Purchases Freight-in 600,000 590,000 10,000 25,000 5,000 270,000 7,600 Markdown cancellations