Shannon's Department Store Prepares Monthly Financial Statements but Only Takes

question 174

Essay

Shannon's Department Store prepares monthly financial statements but only takes a physical count of merchandise inventory at the end of the year. The following information has been compiled for the month of July: $$\begin{array}{ll}&\text {at cost }&\text { at retail}\\\hline \text {beginning inventory }&\$36,000&\$50,000\\\text {merchandise purchases }&99,000&15,000\\\end{array}$$ The net sales for july totaled $150,000.
Instructions
Use the retail inventory method to estimate the ending inventory at cost for July. Show all computations to support your answer.

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Definitions:

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