New York Sales Inc. uses the conventional retail method to estimate its ending inventories. The following data has been summarized for December 31, 2009:
Required:
Compute the cost-to-retail percentage used by New York Sales Inc.
$$\begin{array} { l c r }
& \text { Cost } &{ \text { Retail } } \
\text { Inventory, January 1 } & & \$ 160,000 \
\text { Purchases } & & 538,000 \
\text { Net markups } & & 12,000 \
\text { Net markdowns } & & 9,100 \
\text { Net sales } & & 582,000 \
\text { Inventory, Dec. 31 } & \$ 77,285 &
\end{array}$$

Question

New York Sales Inc. uses the conventional retail method to estimate its ending inventories. The following data has been summarized for December 31, 2009:
Required:
Compute the cost-to-retail percentage used by New York Sales Inc.
 $$\begin{array} { l c r } 
& \text { Cost } &{ \text { Retail } } \
\text { Inventory, January 1 } & & \$ 160,000 \
\text { Purchases } & & 538,000 \
\text { Net markups } & & 12,000 \
\text { Net markdowns } & & 9,100 \
\text { Net sales } & & 582,000 \
\text { Inventory, Dec. 31 } & \$ 77,285 &
\end{array}$$

Quizplus · Accepted Answer

The Answer of New York Sales Inc. uses the conventional retail method to estimate its ending inventories. The following data has been summarized for December 31, 2009:
Required:
Compute the cost-to-retail percentage used by New York Sales Inc.
 $$\begin{array} { l c r } 
& \text { Cost } &{ \text { Retail } } \
\text { Inventory, January 1 } & & \$ 160,000 \
\text { Purchases } & & 538,000 \
\text { Net markups } & & 12,000 \
\text { Net markdowns } & & 9,100 \
\text { Net sales } & & 582,000 \
\text { Inventory, Dec. 31 } & \$ 77,285 &
\end{array}$$