Buffalo 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 $156,500 Purchases (gross) 628,400 Freight-in 31,900 Sales revenue 1,029,400 Sales returns 74,600 Purchase discounts 10,800 G (a) × Your answer is incorrect. Compute the estimated inventory at May 31, assuming that the gross profit is 25% of sales. The estimated inventory at May 31 $ 635500
Buffalo 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 $156,500 Purchases (gross) 628,400 Freight-in 31,900 Sales revenue 1,029,400 Sales returns 74,600 Purchase discounts 10,800 G (a) × Your answer is incorrect. Compute the estimated inventory at May 31, assuming that the gross profit is 25% of sales. The estimated inventory at May 31 $ 635500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Buffalo 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
$156,500
Purchases (gross)
628,400
Freight-in
31,900
Sales revenue
1,029,400
Sales returns
74,600
Purchase discounts
10,800
G
(a)
× Your answer is incorrect.
Compute the estimated inventory at May 31, assuming that the gross profit is 25% of sales.
The estimated inventory at May 31
$
635500
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