Question: 15. The following information appears in Gordon Company's records for the year ended December 31: On December 31, a physical inventory revealed that the ending inventory was only $210,000. Gordon's gross margin on net sales has remained constant at 30 percent in recent years. Gordon suspects that some inventory may have been pilfered by one of the company's

 

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15. The following information appears in Gordon Company's records for the year ended December 31: Inventory, January 1 Purchases Purchase returns Freight in Sales Sales discounts $ 325,000 1,150,000 40,000 30,000 1,700,000 25,000 On December 31, a physical inventory revealed that the ending inventory was only $210,000. Gordon's gross margin on net sales has remained constant at 30 percent in recent years. Gordon suspects that some inventory may have been pilfered by one of the company's employees. At December 31, what is the estimated cost of missing inventory? a. $75,000 b. $82,500 c. $210,000 d. $292,500 15. The following information appears in Gordon Company's records for the year ended December 31: Inventory, January 1 Purchases Purchase returns Freight in Sales Sales discounts $ 325,000 1,150,000 40,000 30,000 1,700,000 25,000 On December 31, a physical inventory revealed that the ending inventory was only $210,000. Gordon's gross margin on net sales has remained constant at 30 percent in recent years. Gordon suspects that some inventory may have been pilfered by one of the company's employees. At December 31, what is the estimated cost of missing inventory? a. $75,000 b. $82,500 c. $210,000 d. $292,500

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To determine the estimated cost of missing inventory we need to calculate the cost of goods sold COG... View the full answer