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A8-23 Gross Margin and Retail Inventory Methods: The records of Diskount Department Stores Inc. provided the following data for 20x5: Sales (gross) $800.000 Sales returns 2.000 Additional markups 9.000 Additional markup cancellations 5,000 Markdowns 7.000 Purchases: At retail 850,000 At cost 459,500 Purchase returns: At retail 4,000 At cost 2,200 7.000 Freight on purchases Beginning inventory: At retail 80,000 At cost 45,000 Markdown cancellations 3,000 1. Betim to the water the ending inventory and cost of goods sold using the gross margin method. Last year's gross Page S01 margin 2. Estimate the letion of the ending inventory and cost of goods sold using the retail sales method, which approximatel lower-of-cost- Cr-NRV valuation. 3. Which method is likely to be more accurate? Comment. A8-23 Gross Margin and Retail Inventory Methods: The records of Diskount Department Stores Inc. provided the following data for 20x5: Sales (gross) $800.000 Sales returns 2.000 Additional markups 9.000 Additional markup cancellations 5,000 Markdowns 7.000 Purchases: At retail 850,000 At cost 459,500 Purchase returns: At retail 4,000 At cost 2,200 7.000 Freight on purchases Beginning inventory: At retail 80,000 At cost 45,000 Markdown cancellations 3,000 1. Betim to the water the ending inventory and cost of goods sold using the gross margin method. Last year's gross Page S01 margin 2. Estimate the letion of the ending inventory and cost of goods sold using the retail sales method, which approximatel lower-of-cost- Cr-NRV valuation. 3. Which method is likely to be more accurate? Comment