Intermediate Accounting 14th Edition

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(6)

Answer

Purchase discounts would be considered in the cost to retail percentage in both Last In First Out (LIFO) retail method and conventional retail.

Work Step by Step

Purchase discounts are offered to buyers therefore allowing them to pay less if thy pay within a certain period.
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