Answer
Sales discounts would be considered in the cost to retail percentage under the conventional retail method.
Work Step by Step
Sales discounts represents a reduction in the price of the market offering (goods or services).
Intermediate Accounting 14th Edition
by Kieso, Donald E.; Weygandt, Jerry J.; Warfield, Terry D.
Published by
Wiley
ISBN 10:
0470587237
ISBN 13:
978-0-47058-723-2
Chapter 9 - Inventories: Additional Valuation Issues - Concepts for Analysis - Page 540: CA9-7(5)
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