Shannon's Department Store prepares monthly financial statements but only takes a physical count of merchandise inventory at the end of the year. The following information has been compiled for the month of July: $$\begin{array}{ll}&\text {at cost }&\text { at retail}\
\hline \text {beginning inventory }&\$36,000&\$50,000\
\text {merchandise purchases }&99,000&15,000\
\end{array}$$The net sales for july totaled $150,000.
Instructions
Use the retail inventory method to estimate the ending inventory at cost for July. Show all computations to support your answer.

Question

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The Answer of Shannon's Department Store prepares monthly financial statements but only takes a physical count of merchandise inventory at the end of the year. The following information has been compiled for the month of July: $$\begin{array}{ll}&\text {at cost }&\text { at retail}\
\hline \text {beginning inventory }&\$36,000&\$50,000\
\text {merchandise purchases }&99,000&15,000\
\end{array}$$The net sales for july totaled $150,000.
Instructions
Use the retail inventory method to estimate the ending inventory at cost for July. Show all computations to support your answer.

Shannon's Department Store Prepares Monthly Financial Statements but Only Takes