Callaho Inc. had a robbery in which a large amount of inventory was taken. The loss is totally covered by insurance. A physical inventory count determined that the cost of the remaining merchandise is $186,200. The following additional information is available: Prepare an estimate of ending merchandise inventory using the retail method to find opening in ventory, Net purchases, Cost of goods available for sale, estimated ending inventory, cost of goods sold at retail and at cost.

At Retail At Cost Opening merchandise inventory. 294,500 190,000 Purchase returns and allowances 12,555 8,100 Purchases 759,500 490,000 Sales 638,995 Sales returns 8,300