E9.14 (LO 4) (Gross Profit Method) Mark Price Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May.Inventory, May 1Purchases (gross)$160,000640,000Freight-in30,000Sales revenue1,000,000Sales returns70,000Purchase discounts12,000Instructionsa. Compute the estimated inventory at May 31, assuming that the gross profit is 30% of sales.b. Compute the estimated inventory at May 31, assuming that the gross profit is 30% of cost.

Name: E9.14 (LO 4) (Gross Profit Method) Mark Price Company uses the gross
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Description: E9.14 (LO 4) (Gross Profit Method) Mark Price Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May.Inventory, May 1Purchases (gross)$160,000640,000Freight-in30

For computing the estimated inventory at the end of the period , we need to prepare trading account.…

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E9.14 (LO 4) (Gross Profit Method) Mark Price 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 Purchases (gross) Freight-in 160,000 640,000 30,000 Sales revenue 1,000,000 Sales returns Purchase discounts 70,000 12,000 Instructions a. Compute the estimated inventory at May 31, assuming that the gross profit is 30% of sales. b. Compute the estimated inventory at May 31, assuming that the gross profit is 30% of cost.

E9.14 (LO 4) (Gross Profit Method) Mark Price 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 Purchases (gross) Freight-in 160,000 640,000 30,000 Sales revenue 1,000,000 Sales returns Purchase discounts 70,000 12,000 Instructions a. Compute the estimated inventory at May 31, assuming that the gross profit is 30% of sales. b. Compute the estimated inventory at May 31, assuming that the gross profit is 30% of cost.

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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