Required information [The following information applies to the questions displayed below.] Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods sold. Data for 2024 are as follows: Beginning inventory Purchases Freight-in Purchase returns Net markups Net markdowns Normal spoilage Abnormal spoilage Sales Sales returns Cost $ 85,000 Retail $ 175,000 352,000 575,000 8,500 6,500 10,500 15,500 11,500 2,500 4,760 7,500 535,000 9,500 The company records sales net of employee discounts. Employee discounts for 2024 totaled $3,500. 2. Estimate Sparrow's ending inventory and cost of goods sold for the year using the retail inventory method and the conventional application. Note: Round Cost-to-retail percentage to 2 decimal places and final answers to the nearest whole dollar amount. Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold Conventional application
Required information [The following information applies to the questions displayed below.] Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods sold. Data for 2024 are as follows: Beginning inventory Purchases Freight-in Purchase returns Net markups Net markdowns Normal spoilage Abnormal spoilage Sales Sales returns Cost $ 85,000 Retail $ 175,000 352,000 575,000 8,500 6,500 10,500 15,500 11,500 2,500 4,760 7,500 535,000 9,500 The company records sales net of employee discounts. Employee discounts for 2024 totaled $3,500. 2. Estimate Sparrow's ending inventory and cost of goods sold for the year using the retail inventory method and the conventional application. Note: Round Cost-to-retail percentage to 2 decimal places and final answers to the nearest whole dollar amount. Estimated ending inventory at retail Estimated ending inventory at cost Estimated cost of goods sold Conventional application
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
[The following information applies to the questions displayed below.]
Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods sold. Data for 2024
are as follows:
Beginning inventory
Purchases
Freight-in
Cost
Retail
$ 85,000
$ 175,000
352,000
575,000
8,500
6,500
10,500
Purchase returns
Net markups
Net markdowns
Normal spoilage
Abnormal spoilage
Sales
Sales returns
15,500
11,500
2,500
4,760
7,500
535,000
9,500
The company records sales net of employee discounts. Employee discounts for 2024 totaled $3,500.
2. Estimate Sparrow's ending inventory and cost of goods sold for the year using the retail inventory method and the conventional
application.
Note: Round Cost-to-retail percentage to 2 decimal places and final answers to the nearest whole dollar amount.
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
Conventional
application](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2aa79901-a97c-4492-a92e-79fe3621a9ba%2F3e03f06a-0f55-47e9-a9ca-79f0e02fdd17%2F4khw3vp_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods sold. Data for 2024
are as follows:
Beginning inventory
Purchases
Freight-in
Cost
Retail
$ 85,000
$ 175,000
352,000
575,000
8,500
6,500
10,500
Purchase returns
Net markups
Net markdowns
Normal spoilage
Abnormal spoilage
Sales
Sales returns
15,500
11,500
2,500
4,760
7,500
535,000
9,500
The company records sales net of employee discounts. Employee discounts for 2024 totaled $3,500.
2. Estimate Sparrow's ending inventory and cost of goods sold for the year using the retail inventory method and the conventional
application.
Note: Round Cost-to-retail percentage to 2 decimal places and final answers to the nearest whole dollar amount.
Estimated ending inventory at retail
Estimated ending inventory at cost
Estimated cost of goods sold
Conventional
application
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