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Retail Method Many Large Retailers Take a Physical Inventory near Year-End and Year-End

Question 117

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Retail method
Many large retailers take a physical inventory near year-end and state in their annual report that inventory has been valued by the "retail method." What does this mean? (Your answer should address [1] whether inventory is valued in the financial statements at cost or retail prices,and [2] how this dollar amount is determined.)

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The retail method may be used as a valua...

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