Gross Profit Method of Estimating Inventory E9.14: Astaire ASA 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 Sales returns Purchases discounts € 1,000,000 70,000 12,000 Instructions: (a) Compute the estimated inventory at May 31, assuming that the gross profit is 25% of sales.

Gross Profit Method of Estimating Inventory E9.14: Astaire ASA 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 Sales returns Purchases discounts € 1,000,000 70,000 12,000 Instructions: (a) Compute the estimated inventory at May 31, assuming that the gross profit is 25% of sales.

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College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter11: Work Sheet And Adjusting Entries

Section: Chapter Questions

Problem 3E: Basga Company uses the periodic inventory system. Beginning inventory amounted to 241,072. A...

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