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Blue Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May. Inventory, May
Blue Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May. Inventory, May 1 $ 145,400 Purchases (gross) 658,600 Freight-in 27.700 Sales revenue 990,600 Sales returns 76,300 Purchase discounts 11,900 (a) * Your answer is incorrect. Compute the estimated inventory at May 31, assuming that the gross profit is 25% of net sales. The estimated inventory at May 31 $ 685725
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