The Rider Company uses the gross profit method to estimate ending inventory and cost of goods sold.

Question:

The Rider Company uses the gross profit method to estimate and cost of goods sold. The cost percentage is determined based on historical data. What factors could cause the estimate of to be overstated?

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...