Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. sparrow company uses the retail inventory method t

Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods...

60.1K

Verified Solution

Question

Accounting

Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods sold. Data for 2024 are as follows:

CostRetailBeginning inventory$ 88,000$ 178,000Purchases356,000578,000Freight-in8,800Purchase returns6,80010,800Net markups15,800Net markdowns11,800Normal spoilage2,800Abnormal spoilage4,8677,800Sales538,000Sales returns9,800

The company records sales net of employee discounts. Employee discounts for 2024 totaled $3,800.

Required:

1. Estimate Sparrows ending inventory and cost of goods sold for the year using the retail inventory method and the average cost application.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Advance Math
1.2K views

1. Why guessing and checking is alright in solving differential equations In lecture (and possibly in...

Physics
1.2K views

Chemical A. Energy stored in the atom.Nuclear B. Energy stored in molecular bonds.Mechanical C. Caused...

Physics
1.2K views

amplitude 2k 3 not perform SHM but will have a periodic motion 4 remain stationary...

Geometry
1.2K views

C D Ricardo has a square hot tub He wants to build a square pool...

Basic Math
1.2K views

Find the derivative f x 4 2x 5 f x

Basic Math
1.2K views

1 1 1 1 a The local minimum occurs at x A 40 b The...

Calculus
1.2K views

Solve the optimal maxu t Sit 3 Sce ent control problem 1 2x t 2u...

Algebra
1.2K views

3 Real numbers a b c satisfy the condition a a b Find 6 a...

Accounting
1.2K views

Hi Please share the Screenshot of latest CashToGeneralLedgerReconciliation from Oracle cloud

Accounting
1.2K views

This diagram refers to which of the following theories: Comparative Advantage Factor Proportion International Product...

Accounting
1.2K views

Ripe Restaurant has yearly sales of $772, 945. Its cost of goods for all food...

Accounting
1.2K views

Which of the following can be an effect of a transaction that increased an asset...