Question
On January 1, 2019, the merchandise inventory of Colton Inc. was $800,000. During 2019, Colton purchased $1,600,000 of merchandise and recorded sales of $2,000,000. The
On January 1, 2019, the merchandise inventory of Colton Inc. was $800,000. During 2019, Colton purchased $1,600,000 of merchandise and recorded sales of $2,000,000. The gross profit rate on these sales was 25%. Using the gross profit method, what is the estimated merchandise inventory of Colton at December 31, 2019?
| A. | $500,000 | |
| B. | $900,000 | |
| C. | $1,500,000 | |
| D. | $400,000 |
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Audit To Love
Authors: Jezabel Lima
1st Edition
B0C2SG8JS7, 979-8988078807
