ABC Malls uses the retail method to estimate it interim inventory balance. It gathered the following for the current reporting period: CostRetailBeginning Inventory800,0001,300,000Purchases5,900,0009,500,000Freih-in240,000 Purchase Returns and allowance460,000600,000Purchase Discount300,000 Net Markup 500,000Net Markdown 400,000Sales 9,200,000Sales returns and allowances 300,000Sales Discount 250,000Normal Inventory loss 400,000 If ABC uses the average retail method, how much would the estimated ending inventory be?

Average retail method is used to estimate the ending inventory balances by calculating cost to…

Answered: ABC Malls uses the retail method to…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter14: Adjustments For A Merchandising Business

Section: Chapter Questions

Problem 3MC: Under the periodic inventory system, what account is debited when an estimate is made for the cost...

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ABC Malls uses the retail method to estimate it interim inventory balance. It gathered the following for the current reporting period:

	Cost	Retail
Beginning Inventory	800,000	1,300,000
Purchases	5,900,000	9,500,000
Freih-in	240,000
Purchase Returns and allowance	460,000	600,000
Purchase Discount	300,000
Net Markup		500,000
Net Markdown		400,000
Sales		9,200,000
Sales returns and allowances		300,000
Sales Discount		250,000
Normal Inventory loss		400,000

If ABC uses the average retail method, how much would the estimated ending inventory be?

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