Retail Inventory Method The following data were available from the records of the Hegge Department Store for the year ended December 31, 2007:
|
At Cost |
At Retail |
|
|
Merchandise inventory, January 1, 2007: |
$90,000 |
$130,000 |
|
Purchases |
330,000 |
460,000 |
|
Markups |
— |
10,000 |
|
Markdowns |
— |
40,000 |
|
Sales |
— |
480,000 |
Required
Using the retail method, what is the estimate of the merchandise inventory at December 31, 2007 valued at the lower of cost or market?