In completing this traditional homework item, follow the same instructions identified (items A through F) for traditional homework item nos. 1 through 8. 23. (2 points) Gross profit method of estimating inventory. a. Leia completed a physical inventory on 12-31-18. On the basis of her count, Leia determined her ending inventory to be $416,750. In recent years, Leia's gross profit equaled 64% of Leia's selling price. Additional information from Leia's accounting records identified the following: Inventory, 12-31-17 $320,000 Purchases during 2018 $1,208,000 Purchase returns during 2018 $44,000 Purchase discounts during 2018 $9,664 Sales during 2018 $3,066,000 Sales returns during 2018 $160,000 Leia suspects some inventory is missing. Leia used the gross profit method to estimate what her ending inventory should be based on historical facts and trends. Prepare the entry, if necessary, to reflect Leia's estimated loss from any missing inventory. b. Evan completed a physical inventory on 12-31-18. On the basis of his count, Evan determined his ending inventory at retail selling prices was $306,000. In recent years, Evan's gross profit equaled 80% of Evan's inventory costs. Additional information from Evan Additional information from Leia's accounting records identified the following: Inventory cost, 12-31-17 $230,000 Net purchases during 2018 $1,008,000 Net sales revenue during 2018 $1,863,000 Evan suspects some inventory is missing. Evan used the gross profit method to estimate what his ending inventory should be based on historical facts and trends. Prepare the entry, if necessary, to reflect Evan's estimated loss from any missing inventory