The records of Mercury Co. provide the following information for the year ended December 31.

Required
1. Use the retail inventory method to estimate the company€™s year-end inventory.
2. A year-end physical inventory at retail prices yields a total inventory of $1,701,900. Prepare a calculation showing the company€™s loss from shrinkage at cost and at retail.

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At Cost At Retail January I beginning inventory Cost of goods purchased Sales. Sales returns ...n. .. 468,010 934,950 3,383,10 6,471,050 5,573,800 48,800