Question: The gross profit method and the retail inventory method are two methods used to estimate inventories. The gross profit method uses the gross profit margin

The gross profit method and the retail inventory method are two methods used to estimate inventories. The gross profit method uses the gross profit margin to estimate the ending inventory, while the retail inventory method uses the cost

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retail ratio to estimate the ending inventory. Companies like Walmart and Amazon use the gross profit method, while companies like Macy's and Nordstrom use the retail inventory method.

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