Under the Retail Method, the Amount of Ending Merchandise Inventory

Multiple Choice

Under the retail method, the amount of ending merchandise inventory is estimated by using the ratio of the:

A) goods available for sale at retail to the goods available for sale at higher of cost or market.
B) goods available for sale at cost to the beginning merchandise inventory.
C) beginning merchandise inventory to the goods available for sale at retail.
D) goods available for sale at cost to the goods available for sale at retail.