Required: 1. Estimate ending inventory for 2019 using the conventional retail method. (Amounts to be deducted should be indicated with a minus sign.) Cost Retail Cost-to-Retail Ratio Beginning inventory Add: Purchases $ 11,000 $ 31,000 570,000 953,000 Add: Freight-in 20,000 Less: Purchase returns (6,000) (4,000) Less: Purchase discounts (5,000) Add: Net markups 20,000 1,000,000 Less: Net markdowns (4,000) Goods available for sale $ 590,000 996,000 Cost-to-retail percentage Less: Net sales Sales Sales returns $ 958,000 (5,000) Employee discounts (3,000) Estimated ending inventory at retail $ 993,000 Estimated ending inventory at cost $ 585,870 59%