The records of Hot’s Department Store report the following data for the month of January: Beginning inventory at cost P 440,000 Beginning inventory at sales price 800,000 Purchases at cost 4,500,000 Initial markup on purchases 2,900,000 Purchase returns at cost 240,000 Purchase returns at sales price 350,000 Freight on purchases 100,000 Additional markup 250,000 Markup cancellations 100,000 Markdown 600,000 Markdown cancellations 100,000 Net sales 6,500,000 Sales allowance 100,000 Sales returns 500,000 Employee discounts 200,000 Theft and other losses 100,000 Using the average retail inventory method, Hot’s ending inventory at cost is
The records of Hot’s Department Store report the following data for the month of January: Beginning inventory at cost P 440,000 Beginning inventory at sales price 800,000 Purchases at cost 4,500,000 Initial markup on purchases 2,900,000 Purchase returns at cost 240,000 Purchase returns at sales price 350,000 Freight on purchases 100,000 Additional markup 250,000 Markup cancellations 100,000 Markdown 600,000 Markdown cancellations 100,000 Net sales 6,500,000 Sales allowance 100,000 Sales returns 500,000 Employee discounts 200,000 Theft and other losses 100,000 Using the average retail inventory method, Hot’s ending inventory at cost is
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The records of Hot’s Department Store report the following data for the month of January:
|
Beginning inventory at cost |
P 440,000 |
|
Beginning inventory at sales price |
800,000 |
|
Purchases at cost |
4,500,000 |
|
Initial markup on purchases |
2,900,000 |
|
Purchase returns at cost |
240,000 |
|
Purchase returns at sales price |
350,000 |
|
Freight on purchases |
100,000 |
|
Additional markup |
250,000 |
|
Markup cancellations |
100,000 |
|
Markdown |
600,000 |
|
Markdown cancellations |
100,000 |
|
Net sales |
6,500,000 |
|
Sales allowance |
100,000 |
|
Sales returns |
500,000 |
|
Employee discounts |
200,000 |
|
Theft and other losses |
100,000 |
Using the average retail inventory method, Hot’s ending inventory at cost is
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