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Subject: accounting
Transcribed Image Text: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:
Beginning inventory
Net purchases
Net markups
Net markdowns
Net sales
Cost Retail
$21,400 $38,600
10,700
?
8,500
2,500
?
The company used the average cost flow method and estimated inventory at the end of September to be $17,120.00. If the company
had used the LIFO cost flow method, the cost-to-retail percentage would have been 50%
Net purchases at retail
Net sales
Required:
Compute net purchases at retail and net sales for the month of September using the information provided. (Do not round your
intermediate calculations.)
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