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Question
On the basis of the following data, estimate the cost of the merchandise inventory at March 31 by the retail method.
| Cost | Retail | |||
| March 1 | Merchandise inventory | $250,000 | $ 350,000 | |
| March 1–31 | Purchases (net) | 850,000 | 1,650,000 | |
| March 1–31 | Sales | 845,000 |
Answer
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