Question 4 (4 MARKS) Fire totally destroyed Young's inventory. In order to claim fire insurance, Young needs to derive the amount of inventory loss in the fire. Young uses the perpetual inventory system in his business and hence, the retail inventory method of estimating inventory would be most appropriate. On the date of the fire, the accountant has updated the ledger with the following balances. Inventory balance carried forward at retail price (selling price) $300,000, the cost of inventory was $180,000. Total cost of purchases to date was $1,200,000 with a retail price of $2,000,000. Net sales to-date was $2,025,000. Required: Estimate the amount of inventory loss based on the retail inventory method