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Question
Based on the following data, determine the estimated cost of the merchandise inventory on March 31 using the retail method.
| Cost | Retail | ||
| March 1 | Merchandise inventory | $225,000 | $357,600 |
| March 1–31 | Purchases (net) | 454,245 | 612,750 |
| March 1–31 | Sales | 835,000 |
Answer
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