Sporting Pro wants to prepare interim financial statements for the first quarter of 2020 but would like to avoid making a physical count of inventory. During the last five years, the company’s gross profit rate has averaged 43%. The following information for the year’s first quarter is available from its records:
 

January 1 beginning inventory	$	330,260
Purchases		975,200
Purchase returns		13,650
Transportation-in		7,500
Sales		1,251,150
Sales returns		9,750

Required:
Use the gross profit method to prepare an estimate of the company’s March 31 inventory.

Answer rating: 100% (QA)

Purchase 975200 Purchase return 13650 Transportatio... View the full answer