Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

QA $598,175 O B. $584,585 O C. $587,315 D. $698,685 Let It Snow Corp (LSC) is a retailer of sk and snowboard equipment. You have

image text in transcribed
QA $598,175 O B. $584,585 O C. $587,315 D. $698,685 Let It Snow Corp (LSC) is a retailer of sk and snowboard equipment. You have been asked to estimate the company's closing inventory at April 30, 20X9, to validate the accuracy of the year-end inventory count. Pertinent details for fiscal 20x9 follow: Cost Retail Gross sales $1,685,000 Sales returns and allowances $39,000 Freight out $14,000 Beginning inventory $220,000 S411,000 Purchases $975,000 $1,834,000 Purchase returns $23,000 $36.000 Historically, LSC has averaged a 64.50% gross margin LSC rounds all percentages to two decimal places (for examplo, 31.47%) Assume that LSC uses the gross profit method to estimate its closing inventory. Based on this estimate, what amount will LSC report as cost of goods sold expense on is statement of comprehensive income for the year ended April 30, 20X9

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Payroll Accounting 2022

Authors: Bernard J. Bieg, Judith A. Toland

32nd Edition

0357518756, 9780357518755

More Books

Students also viewed these Accounting questions