Question: What is the estimated ending inventory on August 31 ? Crescent Goods Ltd uses the gross profit method to estimate inventory and cost of goods

What is the estimated ending inventory on August 31 ?

Crescent Goods Ltd uses the gross profit method to estimate inventory and cost of goods sold for interim reporting purposes. The average gross profit rate is 25% of sales. The following data relate to the month of August: ltem Amount Inventory cost, August 1 $50,200 Purchases during the month $86,700 Sales $95,500 Sales returns $4,300 Using the data above, what is the estimated ending inventory on August 31

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