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what conditions must exist to use retail inventory method

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If a firm uses the retail inventory method, what conditions must exist? How do they account for shrinkage?

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The solution determines what conditions exist to use retail inventory method.

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Here is some information for you regarding the retail inventory method:

The retail inventory method is widely used by retail businesses, particularly department stores. It is based on the relationship of the cost of the merchandise for sale to the retail price of the same merchandise. The retail prices of all merchandise acquired are accumulated in ...

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