ACC 2010 Intermediate Accounting - Assets E8-27 (Retail Inventory Method} Winter 2018 Kieso lice ChDB Class Exercise The records of Sudbnry Menswear report the following data for the month of September: Seies $118,500 Saies returns 2,500 Additional markups 10.500 Markup cancellations 1.500 Markdowns 9,300 Markdown cancellations 2,800 Freight on purchases 3.600 Instructions Purchases (at cost} $ 59.500 Purchases (at sales price) 112,600 Purchase returns (at cost) 2,500 Purchase returns (at sales price) 3.500 Beginning inventory (at cost) 32,000 Beginning inventory (at sales price} 48,500 (a) Estimate the ending inventory using the conventional retail inventory method. (b) Assuming that a physical count of the inventory determined that the actual ending inventory at retail prices at the end of September was $42,000, estimate the loss due to shrinkage and theft