Problem $8\mathrm{.}7$A $($Algo$)$ Retail Method $($LO$8-2,$ LO$8-3,$ LO$8-6)$

Between The Ears $($BTE$.$com$)$ is a popular Internet music store. During the current year, the company$$s cost of goods available for sale amounted to $$463,000.$ The retail sales value of this merchandise amounted to $$847,000.$ Sales for the year were $$753,000.$

At year$-$end, BTE.com takes a physical inventory. The general manager walks through the warehouse counting each type of product and reading its retail price into a recorder. From the recorded information, another employee prepares a schedule listing the entire ending inventory at retail sales prices. The schedule prepared for the current year reports ending inventory at $$28,545$ at retail sales prices.