4-2) Just Retail Ltd. uses the gross profit method to determine ending inventory when preparing its...

  

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4-2) Just Retail Ltd. uses the gross profit method to determine ending inventory when preparing its quarterly financial statements. During the most recent quarter which ended on June 30, the company purchased $2,000,000 of inventory, returned inventory costing $20,000 and also took advantage of purchase discounts of $22,000. In addition, during the same time period, the company had sales return amount worth $10,000 and sales discount amount worth $5,000. Inventory on hand at the beginning of the quarter (April 1) was $600,000. In the last couple of years, the company has had a gross profit of 35% and a net profit of 10% on sales. Sales for the quarter ended June 30 were $3,500,000. Required: What is the estimated dollar amount of ending inventory on hand at June 30. 4-2) Just Retail Ltd. uses the gross profit method to determine ending inventory when preparing its quarterly financial statements. During the most recent quarter which ended on June 30, the company purchased $2,000,000 of inventory, returned inventory costing $20,000 and also took advantage of purchase discounts of $22,000. In addition, during the same time period, the company had sales return amount worth $10,000 and sales discount amount worth $5,000. Inventory on hand at the beginning of the quarter (April 1) was $600,000. In the last couple of years, the company has had a gross profit of 35% and a net profit of 10% on sales. Sales for the quarter ended June 30 were $3,500,000. Required: What is the estimated dollar amount of ending inventory on hand at June 30.

Answer rating: 100% (QA)

Cal culation Sales Sales retuln Sales discount 3500000 less less 0000 5000 Net S... View the full answer