ABC Malls uses the retail method to estimate it interiminventory balance. It gathered the following for the currentreporting period:CostRetailBeginning InventoryP 800,000 P1,300,000Purchases9,500,0005,900,000240,000Freight-inPurchase returns and allowance460,000300,000600,000Purchase discountNet Markup500,000400,0009,200,000Net MarkdownSalesSales returns and allowances300,000250,000Sales discountNormal inventory loss400,000If ABC uses the average retail method, how much would theestimated ending inventory be?

Name: ABC Malls uses the retail method to estimate it interiminventory bala
Uploaded: 2024-03-20T06:32:37.000Z
Channel: Bartleby
Description: ABC Malls uses the retail method to estimate it interiminventory balance. It gathered the following for the currentreporting period:CostRetailBeginning InventoryP 800,000 P1,300,000Purchases9,500,0005,900,000240,000Freight-inPurchase returns and all

Retail Inventory method is used to verify the Ending Inventory Value. There are 2 methods: Average…

Answered: If ABC uses the average retail method,…

Business

Accounting

If ABC uses the average retail method, how much would the estimated ending inventory be?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Explain how to estimate the average cost of inventory when using the retail inventory method.
Compared to using the weighted average cost method to account for inventory, during aperiod in which prices are generally rising, the current ratio of a company using the FIFOmethod would most likely be:A. lower.B. higher.C. dependent upon the interaction with accounts payable.
What is the ending inventory value?
Under which inventory cost flow assumption is the cost of the most recent purchase matched first with sales revenues? Select one: A. FIFO B. Weighted average cost C. LIFO
When inventory costs rise and inventory quantities are not decreasing, what does the LIFO produces?
Explain the retail inventory method of estimating ending inventory.
Stanley's inventory turnover ratio is?
The inventory valuation method which assumes that the items purchased first are the first items to be sold is called the _____ method. average costLIFO specific identificationFIFO
how do I find the amount of inventory under the dollar value using the LIFO method?