Party Time Costumes estimates its inventory by the gross profit method. The gross profit has averaged 50%

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Party Time Costumes estimates its inventory by the gross profit method. The gross profit has averaged 50% of net sales. The company's inventory records reveal the following data (amounts in thousands):

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Requirements

1. Estimate the July 31 inventory; using the gross profit method.

2. Prepare the July income statement through gross profit for Party Time Costumes.

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Accounting

ISBN: 9780132439602

7th Edition

Authors: Charles T. Horngren, Walter T. Harrison

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Question Posted: May 10, 2024 01:49 AM

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Party Time Costumes estimates its inventory by the gross profit method. The gross profit has averaged 50%

Question:

Inventory, July 1 Transactions during July: Purchases......... Purchase discounts.. Purchase returns..... Sales Sales returns... $ 360 3,700 20 10 6,430 30

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Accounting

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