Petcetera had a robbery on the weekend in which a large amount of inventory was taken. The loss is totally covered by insurance. A physical inventory count determined that the cost of the remaining merchandise is $58,500. The following additional information is available:

Required:
1. Prepare an estimate of ending merchandise inventory using the retail method.
2. Calculate the cost of the stolen inventory.

Transcribed Image Text:

At Retail Beginning merchandise inventory. 75,000 93,750 20,000 1,275,000 1,731,250 At Cost 15,000 Transportation-in.. Sales. 18,750 1,642,500 18,000