Nash Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below...

 

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Nash Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May. Inventory, May 1 $147,800 Purchases (gross) 637,400 Freight-in 31,000 Sales revenue 953,600 Sales returns 72.200 Purchase discounts 11,900 (a) Compute the estimated inventory at May 31, assuming that the gross profit is 25% of sales. Nash Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May. Inventory, May 1 $147,800 Purchases (gross) 637,400 Freight-in 31,000 Sales revenue 953,600 Sales returns 72.200 Purchase discounts 11,900 (a) Compute the estimated inventory at May 31, assuming that the gross profit is 25% of sales.

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To compute the estimated inventory at May 31 using the gross profit method we need to calculate the ... View the full answer