Intermediate Accounting
1st Edition
ISBN: 9780132162302
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Chapter 10, Problem 10.7P
Conventional Retail Inventory Method. John Stevens Corporation uses the conventional retail method for financial reporting. The company’s inventory records are summarized here.
| Description | Cost | Retail |
| Beginning inventory | $ 20,000 | $ 56,000 |
| Purchases | 144,500 | 198,400 |
| Additional markups | 9,000 | |
| Markup cancellations | 3,000 | |
| Markdowns | 5,000 | |
| Markdown cancellations | 1,500 | |
| Sales | 235,700 |
Estimate John Stevens’ ending inventory using the conventional retail inventory method (Round percentages to two decimal places.)
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Chapter 10 Solutions
Intermediate Accounting
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