Question
Blue Spruce Company Limited, which follows ASPE, uses the gross profit method to estimate inventory for monthly reports. Information follows for the month of May:
Blue Spruce Company Limited, which follows ASPE, uses the gross profit method to estimate inventory for monthly reports. Information follows for the month of May:
| Inventory, May 1 | $ | 367,000 | ||
| Purchases | 719,000 | |||
| Freightin | 51,000 | |||
| Sales | 1,300,000 | |||
| Sales returns | 75,100 | |||
| Purchase discounts | 12,000 |
Calculate the estimated inventory at May 31, assuming that the gross profit is 25% of sales.
| Estimated inventory, May 31 |
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Financial Accounting
Authors: J. David Spiceland ,Wayne M. Thomas ,Don Herrmann
2nd Revised Edition
0071088385, 978-0071088381
