Johnson enterprises uses the gross profit method to estimate ending inventory. Current year sales and cost of inventory available for sale were $700,000 and $540,000. Historical gross profit 40%. Estimate ending inventory

eBook Brief Exercise 7-8 Estimating Inventory Johnson Enterprises uses the ross profit method to estimate ending n entory. Current year sales and cost of Johnson's historical gross profit percentage is 40%. Required: Estimate Johnson'T ending inventory. the gross prolt methd to estmate ening lnventory, Cun sales and cost of vearylale or sale were $700,00 and 540.00, vent y available for sale were too oo a d 00 Hide Feedback Incorrect First, estimate oross profit by multiplying the current year sales by the gross profit percentage. Next subtract the calculated gross profit from sales to find cost of goods First, estimate gross profit by multiplying thec subtract calculated cost of goods sold from cost of inventory available for sale to determine estimated ending inventory Check My Work (No m