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For numbers 17-18: Karina Company provided the following data for the current year: Cost Retail Beginning inventory 1,500,000 3,000,000 Net purchases 3,200,000 ? Net markup 500,000 Net markdown 200,000 Net sales ? The entity used the average retail inventory method to estimate ending inventory. It was determined that the average cost of the ending inventory was P1,950,000. If the entity used the FIFO retail method, the cost ratio would have been 50%. 17. What is the amount of net purchases at original retail before

For numbers 17-18: Karina Company provided the following data for the current year: Cost Retail Beginning inventory 1,500,000 3,000,000 Net purchases 3,200,000 ? Net markup 500,000 Net markdown 200,000 Net sales ? The entity used the average retail inventory method to estimate ending inventory. It was determined that the average cost of the ending inventory was P1,950,000. If the entity used the FIFO retail method, the cost ratio would have been 50%. 17. What is the amount of net purchases at original retail before

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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For numbers 17-18: Karina Company provided the following data for the current year: Cost Retail Beginning inventory 1,500,000 3,000,000 Net purchases 3,200,000 ? Net markup 500,000 Net markdown 200,000 Net sales ? The entity used the average retail inventory method to estimate ending inventory. It was determined that the average cost of the ending inventory was P1,950,000. If the entity used the FIFO retail method, the cost ratio would have been 50%. 17. What is the amount of net purchases at original retail before markup and markdown? a. 5,900,000 c. 6,600,000 b. 6,100,000 d. 6,400,000 18. What amount was reported as net sales? a. 5,500,000 c. 3,671,875 b. 3,000,000 d. 7,000,000
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