Question: Please provide the solution to this general accounting question with accurate financial calculations. RC Smith Company prepares monthly financial statements and uses the gross profit

Please provide the solution to this general accounting question with accurate financial calculations.

RC Smith Company prepares monthly financial statements and uses the gross profit method to estimate ending inventories. The company's historical gross profit rate is 35%. During July, net sales were $250,000, beginning inventory was $75,000, and purchases during July totaled $135,000. What is RC Smith Company's estimated ending inventory for July 31? A) $47,500 B) $62,500 C) $85,000 D) $97,500

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

This is my important final review for the test please give me a correct answers Please explain your answers: 1. Which of the following should be included in the physical inventory of a company? A)...

May I please get help with 3,4,5 thank you. This is for finance. With adjusting entries Multiple Choice (10 points) 1. An increase in an expense a. increases revenues. b. increases assets. c....

E. Preslay Company prepares monthly financial statements and uses the gross profit method to estimate ending inventories. Historically, the company has had a 40% gross profit rate. During June, net...

If I need to I can list these questions separately and also provide more of the annual report if needed. Thanks for the help! I need help. I have been asked to review the the 2018 Annual Report (Form...

Please provide a page and a half paper to answer the following question: Major factors company should be aware of/evaluate regarding future investments projects. Use the attachments to answer the...

Auditors (you) will use defenses outlined in the Generally Accepted Auditing Standards as well as the International Standards on Auditing to respond to shareholders charges of malpractices,...

Please Show the formulas. Thank you. P8 GROSS PROFIT METHOD (GP) LEARNING OBJECTIVES . . Use the gross profit method to estimate ending inventory. Identify reasons for differences between book and...

i need help step by step to prepare gross profit method.! thank you please explain every step .! PB GROSS PROFIT METHOD (GP) LEAFINING OBJECTIVES - Use the gross profit method to estimate ending...

Assignment in attachment. Very simple assignment. Question 1 Cost of goods sold is determined only at the end of the accounting period in both a perpetual and a periodic inventory system. neither a...

On January 1, Intergen, Inc., invests $200,000 for a 40% interest in Ryan, a new joint venture with two other partners, each investing $150,000 for 30% interest. Intergen plans to sell all of its...

The community of Oakcrest sets a property tax rate of $28 per $1000 assessed valuation. What is the assessment if a tax of $854 is paid on a property?

Loto begins at his back door and walks 8yds east, 6yds north, 12yds east, and 5yds north to the barn door. About how many yds less would he walk if could walk directly from the back door to the barn...

which type of disability insurance would financial experts advice you to purchase

Eddie Industries issues $886,000 of 8% bonds at 103. The amount of cash received from the sale is a.$886,000 b.$912,580 c.$859,420 d.$956,880