The records of Earthly Goods provided the following Information for the year ended December 31, 2020. At Retail $ 521,350 $ 977,150 6,448, 700 129, 35e At Cost January 1 beginning inventory Purchases 4,138, 245 62, 800 Purchase returns Sales 5,595, 700 49, 600 Sales returns

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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The records of Earthly Goods provided the following Information for the year ended December 31, 2020.
At Cost
At Retail
$ 521, 350 $ 977,150
6,448, 700
129, 350
5,595, 700
January 1 beginning inventory
Purchases
4,138, 245
Purchase returns
62, 800
Sales
Sales returns
49, 600
Requlred:
1. Prepare an estimate of the company's year-end Inventory by the retall method. (Round all calculations to two decimal places.)
EARTHLY GOODS
Estimated Inventory
December 31, 2020
At Cost
At Retail
Goods available for sale:
Goods available for sale
Cost to retail ratio
Estimated ending inventory at cost
Transcribed Image Text:The records of Earthly Goods provided the following Information for the year ended December 31, 2020. At Cost At Retail $ 521, 350 $ 977,150 6,448, 700 129, 350 5,595, 700 January 1 beginning inventory Purchases 4,138, 245 Purchase returns 62, 800 Sales Sales returns 49, 600 Requlred: 1. Prepare an estimate of the company's year-end Inventory by the retall method. (Round all calculations to two decimal places.) EARTHLY GOODS Estimated Inventory December 31, 2020 At Cost At Retail Goods available for sale: Goods available for sale Cost to retail ratio Estimated ending inventory at cost
2. Under the assumption the company took a year-end physical inventory at marked selling prices that totalled $1,685,800, prepare a
schedule showlng the store's loss from theft or other causes at cost and at retall.
EARTHLY GOODS
Inventory Shortage
December 31, 2020
At Cost
At Retail
Estimated inventory. December 31
Physical inventory
Inventory shortage
Transcribed Image Text:2. Under the assumption the company took a year-end physical inventory at marked selling prices that totalled $1,685,800, prepare a schedule showlng the store's loss from theft or other causes at cost and at retall. EARTHLY GOODS Inventory Shortage December 31, 2020 At Cost At Retail Estimated inventory. December 31 Physical inventory Inventory shortage
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