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Compute net markdowns

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Baldor Company reports inventory at cost of $30,000 and retail of $65,000 on January 1, 2020. Purchases in 2020 are $20,000 at cost and $30,000 at retail. Sales for 2020 are $79,000. It made additional markups of $8,000 (with cancellations of $3,000). Baldor uses the conventional retail inventory method and estimates the cost of ending inventory at $10,000. Markdowns were taken during the year but the dollar amount is unavailable.

Question a. Compute the cost ratio.

Note: Round the cost ratio to two decimal places.

Question b. Compute net markdowns.

Reference no: EM132524865

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