Acc225 Fundamental Accounting Principles: P6-6B The records of Alaina Co. provide the following

Acc225 Fundamental Accounting Principles

Problem 6-6B Retail inventory method
The records of Alaina Co. provide the following information for the year ended December 31:
At Cost At Retail
January 1 beginning inventory 81,670 114,610
Cost of goods purchased 492,250 751,730
Sales 786,120
Sales returns 4,480

Required
1. Use the retail inventory method to estimate the company’s year-end inventory.
2. A year-end physical inventory at retail prices yields a total inventory of $78,550. Prepare a calculation showing the company’s loss from shrinkage at cost and at retail.
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