Assume Dollar Forest Store estimates its inventory by the gross margin method when preparing monthly financial statements (it uses the periodic method otherwise). For the past two years, the cost of goods purchased has averaged 62 percent of net sales. Assume further that the company's inventory records for its stores reveal the following data: $510,000 Inventory: June 1, 2023 Transactions during June: Purchases Sales Required Requirement 1. Estimate the June 30, 2023, inventory using the gross margin method. Cost of goods sold $4,880,000 $8,435,000 Estimated cost of ending inventory Requirement 2. Prepare the June Income statement through gross margin for Dollar Forest Store. Cost of goods sold Required 1. Estimate the June 30, 2023, inventory using the gross margin method. 2. Prepare the June income statement through gross margin for Dollar Forest Store. Print Done

Assume Dollar Forest Store estimates its inventory by the gross margin method when preparing monthly financial statements (it uses the periodic method otherwise). For the past two years, the cost of goods purchased has averaged 62 percent of net sales. Assume further that the company's inventory records for its stores reveal the following data: $510,000 Inventory: June 1, 2023 Transactions during June: Purchases Sales Required Requirement 1. Estimate the June 30, 2023, inventory using the gross margin method. Cost of goods sold $4,880,000 $8,435,000 Estimated cost of ending inventory Requirement 2. Prepare the June Income statement through gross margin for Dollar Forest Store. Cost of goods sold Required 1. Estimate the June 30, 2023, inventory using the gross margin method. 2. Prepare the June income statement through gross margin for Dollar Forest Store. Print Done

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Description: Assume Dollar Forest Store estimates its inventory by the gross margin method when preparing monthly financial statements (it uses the periodic method otherwise). For the past two years, the cost of goods purchased has averaged 62 percent of net sal

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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