Adams Corporation uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold. The following data are available for the month of September 2021:                                                                                 Cost                         RetailBeginning inventory                                             $21,000                   $35,000Net purchases                                                          10,500                           ?Net markups                                                                                            4,000Net markdowns                                                                                       1,000Net sales                                                                                                        ? The company used the average cost flow method and estimated inventory at the end of September to be $17,437.50. If the company had used the LIFO cost flow method, the cost-to-retail percentage would have been 50%.Required:Compute net purchases at retail and net sales for the month of September using the information provided.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Adams Corporation uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold. The following data are available for the month of September 2021:

                                                                                Cost                         Retail
Beginning inventory                                             $21,000                   $35,000
Net purchases                                                          10,500                           ?
Net markups                                                                                            4,000
Net markdowns                                                                                       1,000
Net sales                                                                                                        ?

The company used the average cost flow method and estimated inventory at the end of September to be $17,437.50. If the company had used the LIFO cost flow method, the cost-to-retail percentage would have been 50%.
Required:
Compute net purchases at retail and net sales for the month of September using the information provided.

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