Use the Following Information for Questions
Trent Co -The Approximate Cost of the Ending Inventory by the Conventional

question 25

Multiple Choice

Use the following information for questions
Trent Co.uses the retail inventory method.The following information is available for the current year. $\begin{array}{lcc}&\text { Cost }& \text { Retail }\\\text { Beginning inventory } & \$ 78,000 & \$ 122,000 \\\text { Purchases } & 295,000 & 415,000 \\\text { Freight-in } & 5,000 & - \\\text { Employee discounts } & - & 2,000 \\\text { Net markups } & - & 15,000 \\\text { Net Markdowns } & - & 20,000 \\\text { Sales } & - & 390,000\end{array}$
-The approximate cost of the ending inventory by the conventional retail method is

• A)$95,900.
• B)$94,920.
• C)$98,000.
• D)$102,480.

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Definitions:

Bottom-up Processing

An approach to information processing that starts with small details and works up to a coherent whole.

Sensory Adaptation

The sequence by which receptors dedicated to sensing decrease their sensitivity to consistent stimuli over durations.

Perceptual Process

The sequence of psychological steps that a person uses to organize and interpret information from the external world into meaningful experiences.

Contrast Effects

A cognitive phenomenon where the judgment of one item is influenced by the comparison with a recently encountered contrasting item.