Margolians Dept Store Estimates Inventory by Using the Retail Inventory

question 69

Multiple Choice

Margolians Dept Store estimates inventory by using the retail inventory method. The following information was developed: The estimated cost of the ending inventory is

• A) $250,000.
• B) $140,000.
• C) $ 95,000.
• D) $100,000.

---

Definitions:

Services Rendered

Work or duties provided by one party to another, often resulting in payment for the work done.

Income Concepts

Various frameworks and principles used to measure and report income, including realization, recognition, and measurement principles.

Capital Maintenance

A concept in accounting that ensures a company's capital is maintained over time, typically measured in financial or physical terms.

Transactional Approach

An accounting method focusing on individual business transactions and analyzing their effects on financial statements without considering broader economic events.