Tucker Company uses the periodic inventory method and wants to estimate the amount of ending inventory in order to prepare quarterly financial statements. Sales for the quarter were $13,000. Based on historical records, the company earns an average gross margin of 25 percent on sales. Beginning inventory for the quarter was $3,500 and purchases were $7,100. The amount of ending inventory was

Question 7 options:

A)

$3,250.

B)

$850.

C)

$10,600.

D)

$9,750.