ABC Malls uses the retail method to estimate it interim inventory balance. It gathered the following for the current reporting period: Cost Retail Beginning Inventory P 800,000 P1,300,000 Purchases 5,900,000 9,500,000 Freight-in 240,000 Purchase returns and allowance 460,000 300,000 600,000 Purchase discount Net Markup Net Markdown 500,000 400,000 9,200,000 300,000 250,000 400,000 If ABC uses the average retail method, how much would the Sales Sales returns and allowances Sales discount Normal inventory loss estimated ending inventory be?
ABC Malls uses the retail method to estimate it interim inventory balance. It gathered the following for the current reporting period: Cost Retail Beginning Inventory P 800,000 P1,300,000 Purchases 5,900,000 9,500,000 Freight-in 240,000 Purchase returns and allowance 460,000 300,000 600,000 Purchase discount Net Markup Net Markdown 500,000 400,000 9,200,000 300,000 250,000 400,000 If ABC uses the average retail method, how much would the Sales Sales returns and allowances Sales discount Normal inventory loss estimated ending inventory be?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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After looking at the attachment, if ABC uses the average retail method, how much would the estimated ending inventory be?
Transcribed Image Text:ABC Malls uses the retail method to estimate it interim
inventory balance. It gathered the following for the current
reporting period:
Cost
Retail
Beginning Inventory
P 800,000 P1,300,000
Purchases
9,500,000
5,900,000
240,000
Freight-in
Purchase returns and allowance
460,000
300,000
600,000
Purchase discount
Net Markup
500,000
400,000
9,200,000
Net Markdown
Sales
Sales returns and allowances
300,000
250,000
Sales discount
Normal inventory loss
400,000
If ABC uses the average retail method, how much would the
estimated ending inventory be?
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