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/ 2. Hestor Company's records indicate the following information: Merchandise inventory, January 1 $ 550,000 Purchases, January 1 through December 31 2,250,000 Sales, January 1
/ 2. Hestor Company's records indicate the following information: Merchandise inventory, January 1 $ 550,000 Purchases, January 1 through December 31 2,250,000 Sales, January 1 through December 31 3,000,000 On December 31, a physical inventory determined that ending inventory of $600,000 was in the warehouse. Hestor's gross profit on sales has remained constant at 30%. Hestor suspects some of the inventory may have been taken by some new employees. At December 31, what is the estimated cost of missing inventory? a. $100,000 b. $200,000 c. $300,000 d. $700,000
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