Retail inventory system:
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A retail inventory system:
a. provides the internal control of a periodic inventory system.
b. cannot be used if inventory purchases are made at different costs during the period.
c. records inventory purchases by debiting Inventory for the cost of the merchandise and crediting Accounts Payable for the selling price of the merchandise.
d. calculates a cost-to-retail percentage by dividing sales at retail dollars by cost of goods available at cost dollars.
e. allows for the determination of inventory losses during the period.
I an suggesting the answer is C but I am not certain. Can you provide me with and explanation if I am correct. If I am not, can you give me your reasonings why?
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This explains the concept of retail inventory system
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A retail inventory system:
ANswer is
d. calculates a cost-to-retail percentage by dividing sales at retail dollars by cost of goods available at cost dollars.
Explanation
The retail inventory method requires the ...
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