Reference no: EM133055898

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

Sales $118,900 Purchases (at cost) $66,500

Sales returns 2,600 Purchases (at sales price) 118,000

Additional markups 12,200 Purchase returns (at cost) 2,900

Markup cancellations 2,400 Purchase returns (at sales price) 3,500

Markdowns 9,300 Beginning inventory (at cost) 36,300

Markdown cancellations 3,200 Beginning inventory (at sales price) 49,900

Freight on purchases 4,000

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 $41,400, estimate the loss due to shrinkage and theft.