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Carla Vista Company, which follows ASPE, uses the gross profit method to estimate inventory for monthly reports. Information follows for the month of May: Inventory, May 1 Purchases Freight in Sales Sales returns Purchase discounts $165,000 646,000 35,000 1,070,000 80,000 14,000 Calculate the estimated inventory at May 31, assuming gross profit is 31% of net sales. Estimated ending inventory $

Carla Vista Company, which follows ASPE, uses the gross profit method to estimate inventory for monthly reports. Information follows for the month of May: Inventory, May 1 Purchases Freight in Sales Sales returns Purchase discounts $165,000 646,000 35,000 1,070,000 80,000 14,000 Calculate the estimated inventory at May 31, assuming gross profit is 31% of net sales. Estimated ending inventory $

FINANCIAL ACCOUNTING
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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Carla Vista Company, which follows ASPE, uses the gross profit method to estimate inventory for monthly reports. Information follows for the month of May: Inventory, May 1 Purchases Freight in Sales Sales returns Purchase discounts $165,000 646,000 35,000 1,070,000 Estimated ending inventory 80,000 14,000 Calculate the estimated inventory at May 31, assuming gross profit is 31% of net sales. $
Transcribed Image Text:Carla Vista Company, which follows ASPE, uses the gross profit method to estimate inventory for monthly reports. Information follows for the month of May: Inventory, May 1 Purchases Freight in Sales Sales returns Purchase discounts $165,000 646,000 35,000 1,070,000 Estimated ending inventory 80,000 14,000 Calculate the estimated inventory at May 31, assuming gross profit is 31% of net sales. $
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