What Is Retail Accounting? A Guide to the Retail Method of Accounting
Using the example above, your inventory was $3,200, total sales were $3,750, and the cost-to-retail ratio was 40%. Using the same example, let’s say you sell 130 bottles of water for $25 each. Then, you decided to buy 100 more water bottles which cost you $12 each, totaling up to $1,200. Retail stores face at…