Retail Method of Estimating Inventory

The records of Earthly Goods provided the following information for the year ended December $212020$

At Cost At Retail

January $1$ beginning inventory $$942,700$  $$1,854,300$

Purchases $$6,657,660$  $$12,797,400$ 

Purchase returns $$105,600$  $$238,700$ 

Sales $$10,991,400$ 

Sales Returns $$89,200$ 

Required:

Prepare an estimate of the company's year end inventory using the retail method.

Answer rating: 100% (QA)

Heres how to calculate the estimated yearend inventory for Earthly Goods using the retail method 1 C... View the full answer