The following data concerning the conventional retail inventory method are taken from the financial records of Welch Company. Cost Beginning inventory $196,000 Purchases 896,000 Freight-in 24,000 Net markups Net markdowns Sales Retail $280,000 1,280,000 80,000 56,000 1,344,000 If a count of the ending inventory reveals that merchandise actually on hand amounts to $144,000 at retail, the business has Orealized a windfall gain. Osustained a loss. Ono gain or loss as there is close coincidence of the inventories.

The following data concerning the conventional retail inventory method are taken from the financial records of Welch Company. If a count of the ending inventory reveals that merchandise actually on hand amounts to $144,000 at retail, the business has realized a windfall gain sustained alos. no gain or loss as there is close coincidence of the inventoriex