JCPenney Company, Inc., is a major retailer with department stores in 49 states and Puerto Rico. The

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JCPenney Company, Inc., is a major retailer with department stores in 49 states and Puerto Rico. The main part of the company's business consists of providing merchandise and services to consumers through department stores. In 2010, JCPenney reported cost of goods sold of $10,799 million, ending inventory for the current year of $3,213 million, and ending inventory for the previous year (2009) of $3,024 million.
Required:
If you knew that the cost of inventory purchases was $11,289 million, could you estimate the cost of shrinkage during the year? If so, prepare the estimate and, if not, explain why.
Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula                Ending Inventory Formula =...
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Related Book For  book-img-for-question

Fundamentals Of Financial Accounting

ISBN: 9780073527109

3rd Edition

Authors: Fred Phillips, Robert Libby, Patricia A Libby

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