To use the retail method of estimating ending inventory, the figure for net sales at retail must be known.

Name: To use the retail method of estimating ending inventory, the figure for net sales at retail must be known.
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Question

Quizplus · Accepted Answer

The formula for calculating the ending inventory using retail method is: Beginning Inventory at Retail + Purchases at Retail - Sales at Retail = Ending Inventory at Retail. Therefore, the figure for net sales at retail is needed to calculate the ending inventory.

To Use the Retail Method of Estimating Ending Inventory, the Figure