The retail inventory method includes which of the following in the calculation of both cost and retail amounts of goods available for sale?

a. Purchase returns.

b. Sales returns.

c. Net markups.

d. Freight in.

Choice "a" is correct. Purchase returns are included in both the retail column and cost column.

Choices "b" and "c" are incorrect. Sales returns and net markups appear only in the retail column as they

both are below the "total available for sale" line.

My question is where I can find the retail worksheet format?? I am lost in this question. Thanks!

Choice "d" is incorrect. Freight in appears only in the cost column.