INTER. ACCOUNTING - CONNECT+ALEKS ACCESS
10th Edition
ISBN: 9781264770335
Author: SPICELAND
Publisher: MCG
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Raleigh Department Store uses the conventional retail method for the year ended December 31, 2019. Available
information follows:
a. The inventory at January 1, 2019, had a retail value of $43,000 and a cost of $33,210 based on the conventional retail
method.
b. Transactions during 2019 were as follows:
Gross purchases
Purchase returns
Purchase discounts
Gross sales
Sales returns
Employee discounts
Freight-in
Net markups
Net markdowns
Cost
$249,510
6,300
4,800
26,500
Retail
$470,000
22,000
446,500
8,000
4,500
23,000
22,000
Sales to employees are recorded net of discounts.
c. The retail value of the December 31, 2020, inventory was $55,080, the cost-to-retail percentage for 2020 under the
LIFO retail method was 76%, and the appropriate price index was 102% of the January 1, 2020, price level.
d. The retail value of the December 31, 2021, inventory was $47,250, the cost-to-retail percentage for…
Raleigh Department Store uses the conventionalretail method for the year ended December 31, 2019. Available information follows .
Answer both parts .
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