AE9-20 - Totals 96,502 148,595 Add: Net markups: Markups...

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AE9-20 Correct.     (Retail Inventory Method) The records of Mandy's Boutique report the following data for the month of April. Sales $107,350 Purchases (at cost) $62,150   Sales returns 2,260  Purchases  (at sales price) 99,440   Markups 11,300  Purchase returns (at cost) 2,260   Markup cancellations 1,695  Purchase returns (at sales price) 3,390   Markdowns 10,509  Beginning inventory (at cost) 33,900   Markdown cancellations 3,164  Beginning inventory (at sales price) 52,545   Freight on purchases 2,712      Compute the ending inventory by the conventional retail inventory method.   Cost   Retail Beginning inventory $33,900    $52,545  Purchases 62,150    99,440  Purchase returns (2,260)   (3,390) Freight on purchases 2,712 
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Unformatted text preview: Totals 96,502 148,595 Add: Net markups: Markups $11,300 Markup cancellations (1,695) 9,605 $96,502 158,200 Deduct: Net markdowns: Markdowns 10,509 Markdown cancellations (3,164) Net markdowns 7,345 Sales price of goods available 150,855 Deduct: Net sales ($107,350 - $2,260) 105,090 Ending inventory, at retail $45,765 Cost-to-retail ratio = $96,502 = 61% $158,200 Ending inventory at cost = 61% $45,765 = $27,917...
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