Problem 6-17A Retail inventory method LO6, 7

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

At Cost At Retail Beginning merchandise inventory$75,000 $93,750 Purchase returns and allowances 15,000 20,000 Purchases 1,275,000 1,731,250 Transportation-in 18,750 Sales 1,642,500 Sales returns and allowances 18,000

Required: 1. Prepare an estimate of ending merchandise inventory using the retail method.

2. Calculate the cost of the stolen inventory.