The records of Monde Menswear report the following data for the month of September:

Instructions
(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.
(c) Identify four reasons why the estimate of inventory may be different from the actual inventory at cost.

Transcribed Image Text:

Sales Sales returns Additional markups Markup cancellations Markdowns Markdown cancellations Freight on purchases $118,500 2,500 10,500 1,500 9,300 800 3,600 Purchases (at cost) Purchases (at sales price) Purchase returns (at cost) Purchase returns (at sales price) Beginning inventory (at cost) Beginning inventory $59,500 112,600 2,500 3,500 32,000 48,500 2, (at sales price)