The accountant for Buy & Large, Inc. needs to estimate the ending inventory balance so that...
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The accountant for Buy & Large, Inc. needs to estimate the ending inventory balance so that he can prepare quarterly financial statements. The accountant has gathered the following information: Beginning inventory $10,000 Sales $100,000 Purchases $80,000 Gross profit percentage 40% Use the gross profit method to estimate the cost of the ending inventory. A) $42,000 B) $40,000 OC) $20,000 D) $30,000 The accountant for Buy & Large, Inc. needs to estimate the ending inventory balance so that he can prepare quarterly financial statements. The accountant has gathered the following information: Beginning inventory $10,000 Sales $100,000 Purchases $80,000 Gross profit percentage 40% Use the gross profit method to estimate the cost of the ending inventory. A) $42,000 B) $40,000 OC) $20,000 D) $30,000
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Answer D 30 000 Etimated cost of goods available for ... View the full answer
Related Book For
Accounting Principles
ISBN: 978-1119048473
7th Canadian Edition Volume 2
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
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