. When you undertook the preparation of the financial statements for Telfer Company at January 31, 2021, the following data were available: At CostAt RetailInventory, February 1, 2020$70,800$98,500Markdowns 35,000Markups 63,000Markdown cancellations 20,000Markup cancellations 10,000Purchases219,500294,000Sales revenue 335,000Purchases returns and allowances4,3005,500Sales returns and allowances 10,000 Compute the ending inventory at cost as of January 31, 2021, using the retail method which approximates lower of cost or market.Answer:

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Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 8EB: Using the following select financial statement information from Mover Supply Depot, compute the...

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. When you undertook the preparation of the financial statements for Telfer Company at January 31, 2021, the following data were available:

	At Cost	At Retail
Inventory, February 1, 2020	$70,800	$98,500
Markdowns		35,000
Markups		63,000
Markdown cancellations		20,000
Markup cancellations		10,000
Purchases	219,500	294,000
Sales revenue		335,000
Purchases returns and allowances	4,300	5,500
Sales returns and allowances		10,000

Compute the ending inventory at cost as of January 31, 2021, using the retail method which approximates lower of cost or market.

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