When you undertook the preparation of the financial statements for Sheridan Company at January 31, 2021, the following data were available: Inventory, February 1, 2020 Markdowns Markups Markdown cancellations Markup cancellations Purchases Sales revenue Purchases returns and allowances Sales returns and allowances At Cost $78,900 At Retail $98,100 35,200 62,500 20,300 10,400 222,000 280,000 320,000 6,200 9,600 Ending inventory at cost 4,100 Compute the ending inventory at cost as of January 31, 2021, using the retail method which approximates lower of cost or market.
When you undertook the preparation of the financial statements for Sheridan Company at January 31, 2021, the following data were available: Inventory, February 1, 2020 Markdowns Markups Markdown cancellations Markup cancellations Purchases Sales revenue Purchases returns and allowances Sales returns and allowances At Cost $78,900 At Retail $98,100 35,200 62,500 20,300 10,400 222,000 280,000 320,000 6,200 9,600 Ending inventory at cost 4,100 Compute the ending inventory at cost as of January 31, 2021, using the retail method which approximates lower of cost or market.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:When you undertook the preparation of the financial statements for Sheridan Company at January 31, 2021, the following data were
available:
Inventory, February 1, 2020
Markdowns
Markups
Markdown cancellations
Markup cancellations
Purchases
Sales revenue
Purchases returns and allowances
Sales returns and allowances
At Cost
$78,900
Ending inventory at cost $
222,000
4,100
At Retail
$98,100
35,200
62,500
20,300
10,400
280,000
320,000
6,200
9,600
Compute the ending inventory at cost as of January 31, 2021, using the retail method which approximates lower of cost or market.
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