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K-Cal Company uses the gross profit method to estimate inventory and has a beginning inventory of $100,000. The gross purchases is $200,000. Purchase discounts is
K-Cal Company uses the gross profit method to estimate inventory and has a beginning inventory of $100,000. The gross purchases is $200,000. Purchase discounts is $20,000 and purchase returns is $15,000. Sales are $350,000 with a sales returns of $15,000.
Instruction:
Compute the estimated ending inventory assuming that the gross profit is 35% of sales.
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