• P 96 Retail inventory method; conventional: LO94
• need solution please

e. Based on prior experience, shrinkage due to shoplifting was estimated to be $15,000 of retail value. f. Merchandise is sold to employees at a 20% of selling price discount. Employee sales are recorded in a sepa- rate account at the net selling price. The balance in this account at the end of 2016 is $250,000. Sales to customers totaled $1,750,000 for the year. Required: Media 1. Estimate ending inventory and cost of goods sold using the conventional retail method. 2. Estimate ending inventory and cost of goods sold using the LIFO retail method. (Assume stable prices.) P 9-6 Retail inventory method; conventional LO9-4 Grand Department Store, Inc., uses the retail inventory method to estimate ending inventory for its monthly financial statements. The following data pertain to a single department for the month of October 2016: Inventory, October 1, 2016: At cost $ 20,000 At retail 30,000 Purchases (exclusive of freight and returns): At cost 100,151 At retail 146,495 Freight-in 5,100 Purchase returns: At cost 2,100 At retail 2,800 Additional markups 2,500 Markup cancellations 265 Markdowns (net) 800 Normal spoilage and breakage 4,500 Sales 135,730 Required: 1. Using the conventional retail method, prepare a schedule computing estimated lower of cost and net realiz- able value inventory for October 31, 2016. 2. A department store using the conventional retail inventory method estimates the cost of its ending inventory as $29,000. An accurate physical count reveals only $22,000 of inventory at lower of cost and net realizable value, List the factors that may have caused the difference between computed inventory and the physical count (AICPA adapted