Reference no: EM132845471

Question - The records of Sudbury Menswear report the following data for the month of September:

Sales $118,500

Purchases (at cost) $59,500

Sales returns 2,500

Purchases (at sales price) 112,600

Additional markups 10,500

Purchase returns (at cost) 2,500

Markup cancellations 1,500

Purchase returns (at sales price) 3,500

Markdowns 9,300

Beginning inventory (at cost) 32,000

Markdown cancellations 2,800

Beginning inventory (at sales price) 48,500

Freight on purchases 3,600

Required -

1. Estimate the ending inventory using the retail inventory method.

2. 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.