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Problem - ABC Malls uses the retail method to estimate it interim inventory balance. It gathered the following for the current reporting period:
Cost
Retail
Beginning Inventory
P800,000
P1,300,000
Purchases
5,900,000
9,500,000
Freight-in
240,000
Purchase returns and allowance
460,000
600,000
Purchase discount
300,000
Net Markup
500,000
Net Markdown
400,000
Sales
9,200,000
Sales returns and allowances
Sales discount
250,000
Normal inventory loss
If ABC uses the average retail method, how much would the estimated ending inventory be?
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