Horizon Trading Co. uses the gross profit method to estimate inventory and cost of goods sold for interim reporting purposes. The average gross profit rate is 30% of sales. The following data relate to the month of June: Item Inventory cost, June 1 Amount $42,500 Purchases during the month $78,900 Sales Sales returns $105,800 $3,200 Using the data above, what is the estimated ending inventory on June 30?

Horizon Trading Co. uses the gross profit method to estimate inventory and cost of goods sold for interim reporting purposes. The average gross profit rate is 30% of sales. The following data relate to the month of June: Item Inventory cost, June 1 Amount $42,500 Purchases during the month $78,900 Sales Sales returns $105,800 $3,200 Using the data above, what is the estimated ending inventory on June 30?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 6EB: Bleistine Company had the following transactions for the month. Calculate the gross margin for the...

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