Soho Clothing Store values its inventoy under the retail inventory method. The following data are available for 2002.

Instructions:
1. Compute the estimated inventory at December 3 1 , 2002, using the retail inventory method to estimate inventory at lower of cost or market.
2. Prepare the summary accounting journal entries to record the above inventory data (include entries to record the purchases, sales, and closing of Inventory to Cost of Goods Sold).
3. What gross profit would be reported on the income statement for 2002?

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Inventory, January 1 Markdowns. Markups Purchases Sales Purchase returns Sales discounts Freight-in Cost $ 46,053 Retail $ 79,100 15,000 31,600 142,390 221,600 251,500 4,000 6,000 12,000 14,600