Red department store uses the retail inventory method. Information relating to the computation of the inventory at December 31,2019 is as follows

Prepare a schedule to calculate the estimated ending using the conventional retail inventory method. Round the cost to retail ratio to 3 decimal points.

Intermediate Accounting I (ACC2100) Challenge Problem #2 (20 Points) DUE NLT: December 12, 2018, start of class These are optional problems. Each problem is worth a maximum of 10 Points. CP2-1. Red Department Store uses the retail method inventory method. Information relating to the computation of the inventory at December 31, 2019, is as follows: Cost Retail Cost Retail 7,000 3,000 2,000 1,000 Inventory, January 1 25,000 60,000 Markdowns $ 75,000 180,000 Additional markups Purchases Sales Purchase returns 205,000 Markdown cancellations 5,000 Markup cancellations 2,000 Instructions: Prepare a schedule to calculate th inventory method (lower of average cost or market). Round the cost to retail ratio to 3 decimal points