How much would the estimated ending inventory be

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Problem - ABC Malls uses the retail method to estimate it interim inventory balance. It gathered the following for the current reporting period:

 

Cost

Retail

Beginning Inventory

P800,000

P1,300,000

Purchases

5,900,000

9,500,000

Freight-in

240,000

 

Purchase returns and allowance

460,000

600,000

Purchase discount

300,000

 

Net Markup

 

500,000

Net Markdown

 

400,000

Sales

 

9,200,000

Sales returns and allowances

 

300,000

Sales discount

 

250,000

Normal inventory loss

 

400,000

If ABC uses the average retail method, how much would the estimated ending inventory be?

Reference no: EM132840425

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