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Goods available for sale: Beginning inventory Net purchases Net markups Net markdowns Total goods available for sale Net sales Net markups Net markdowns Cost Retail $ 220,500 $ 304,500✔ 1,249,500✔ 1,732,500 63,000 0 0✔ 0✔ $ 1,470,000 ✓ 2,100,000 1,659,000 x 0

Goods available for sale: Beginning inventory Net purchases Net markups Net markdowns Total goods available for sale Net sales Net markups Net markdowns Cost Retail $ 220,500 $ 304,500✔ 1,249,500✔ 1,732,500 63,000 0 0✔ 0✔ $ 1,470,000 ✓ 2,100,000 1,659,000 x 0

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Goods available for sale: Beginning inventory Net purchases Net markups Net markdowns Total goods available for sale Net sales Net markups Net markdowns Estimated ending inventory at retail 0x Cost Cost Ratio Numerator / Denominator = 0x/$ $ 220,500 $ 304,500 1,249,500 1,732,500 63,000 $ 1,470,000 ✓ Retail Result Estimated ending inventory at cost: $ 0 0✔ 2,100,000 1,659,000 x 21,000 x 0x . Note: Use the result above EXACTLY as shown to compute the following amount. x
Transcribed Image Text:Goods available for sale: Beginning inventory Net purchases Net markups Net markdowns Total goods available for sale Net sales Net markups Net markdowns Estimated ending inventory at retail 0x Cost Cost Ratio Numerator / Denominator = 0x/$ $ 220,500 $ 304,500 1,249,500 1,732,500 63,000 $ 1,470,000 ✓ Retail Result Estimated ending inventory at cost: $ 0 0✔ 2,100,000 1,659,000 x 21,000 x 0x . Note: Use the result above EXACTLY as shown to compute the following amount. x
Valuing Inventory Using Conventional Retail Method At December 31, the following information is available from Palo Company's accounting records. If sales are $1,659,000 and markdowns total $21,000, compute estimated inventory at December 31 using the conventional retail method. Inventory January Purchases Cost Retail $220.500 $304500 1.249.500 1,732.500 63.000 Netmarkups Available for sale $1.470.000 $2,100,000 Note: Use negative signs as appropriate in the following schedule. Goods available for sale Beginning eventory Net purchases Netmarks Netmarkdowns Tetal goods available for sale Net sales Net Estimadanding y Cost 220.500$ 304.500 1,249.500 1.732.500 63,000 50 Watail $1,470,000 2,100,000 165/8000 21,000
Transcribed Image Text:Valuing Inventory Using Conventional Retail Method At December 31, the following information is available from Palo Company's accounting records. If sales are $1,659,000 and markdowns total $21,000, compute estimated inventory at December 31 using the conventional retail method. Inventory January Purchases Cost Retail $220.500 $304500 1.249.500 1,732.500 63.000 Netmarkups Available for sale $1.470.000 $2,100,000 Note: Use negative signs as appropriate in the following schedule. Goods available for sale Beginning eventory Net purchases Netmarks Netmarkdowns Tetal goods available for sale Net sales Net Estimadanding y Cost 220.500$ 304.500 1,249.500 1.732.500 63,000 50 Watail $1,470,000 2,100,000 165/8000 21,000
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