Merchandise inventory balance, beginning of year ?
You have just graduated with a business diploma in management and have been hire as the inventory management and have been hire as the inventory manager for a local sporting goods store. Your first task is to review and assess the following information: 2023 2022
Cost of merchandise sold to customers in sales transactions $480,000 $320,000
Merchandise inventory balance, beginning of year ? 84,000
Invoice cost of merchandise purchases 510,000 240,000
Shrinkage determined at end of year 2,500 14,000
Cost of transportation-in 25,500 12,000
Cost of merchandise returned by customers and restored to inventory 115,000 22,400
Purchase discounts received 5,100 2,400
Purchase returns and allowances received 2,550 1,200
Required:
Using the elements of critical thinking described on the inside front cover, comment
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