The skeleton of the basic retail inventory calculation is presented below:

Required:
Explain how the following items would affect the computation of ending inventory using the retail inventory method:
1.Freight-in.
2.Purchase returns.
3.Sales returns and allowances.
4.Normal spoilage.
5.Discounts to employees and favored customers.

Question

The skeleton of the basic retail inventory calculation is presented below:
  
Required:
Explain how the following items would affect the computation of ending inventory using the retail inventory method:
1.Freight-in.
2.Purchase returns.
3.Sales returns and allowances.
4.Normal spoilage.
5.Discounts to employees and favored customers.

Quizplus · Accepted Answer

The Answer of The skeleton of the basic retail inventory calculation is presented below:
  
Required:
Explain how the following items would affect the computation of ending inventory using the retail inventory method:
1.Freight-in.
2.Purchase returns.
3.Sales returns and allowances.
4.Normal spoilage.
5.Discounts to employees and favored customers.

The Skeleton of the Basic Retail Inventory Calculation Is Presented