New York Sales Inc Uses The Convention Retail Method To Estimate Its Ending Inve

New York Sales Inc. uses the convention retail method to estimate its ending inventories. The following data has been summarized for Dec 31, 2009:Retail160,000 538,000 12,0009,100582,00077,285 Compute the cost to retail percentage used by New York Sales Inc.

Ending inventory at Retail = Goods Available at Retail + Net Mark ups – Net Markdowns – Net sales at RetailEnding Inventory (at cost) = Ending Inventory (at Retail) X Cost to Retail RatioThus,…