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 $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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