ifrs system

Question seven: (15 marks) Sava Co. uses the retail inventory method to estimate ending inventory for the financial statements, the following data is for the year ended 31/12/2020: Accounts Price at cost Price at retail Inventory 31/12/2019 $125000 $166,250 Gross sales 258600 Purchases returns 7,000 8750 Freight-in 6500 Fright out 7600 Purchases discount 13500 Sales returns 8,500 Employee discount 1,250 Loss from breakage (normal) 750 Markups 18,000 Sales discount 3850 8000 140,000 Abnormal shortage Purchases Markdowns Markdown cancellation Markup cancellation 10000 175,000 9,038 2150 3000 Required: Computes the ending inventory under cost and LCNRV methods) in 31/12/2020