Answer:
$83,850
Explanation:
Lacy's Linen Mart
Cost Retail
Beginning inventory$88,500 $139,000
Add: net purchases$331,000 $499,000
Goods available for sale$419,500 $638,000
Cost-to-retail percentage
= $419,500÷ $638,000 = 65%
Less: Net sales($509,000)
Estimated ending inventory at retail
($638,000 -$509,000) $ 129,000
Estimated ending inventory at cost(65% x $129,000)$83,850
Therefore the estimated inventory at June 30, 2021, would be $83,850
