Question
Exercise 9-14 MartinezCompany uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May. Inventory,
Exercise 9-14
MartinezCompany uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May.
Inventory, May 1 $174,100
Purchases (gross) $688,900
Freight-in $27,300 Sales revenue $995,000 Sales returns $73,400
Purchase discounts $11,600
Compute the estimated inventory at May 31, assuming that the gross profit is 25% of net sales.
The estimated inventory at May 31 =$
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Accounting Volume 2
Authors: James Reeve, Jonathan Duchac, Sheila Elworthy, Carl S. Warren
2nd Canadian edition
176501452, 978-0176501457, 978-0176509743
